ASTM E2131-16(2022)

Standard Practice for Addressing and Reporting Losses of Tangible Property

SIGNIFICANCE AND USE
5.1 Losses of property are indicators of the effectiveness of operations. Excessive losses can indicate poor internal management and controls, policy or procedural weaknesses, or lack of compliance, any one of which can have a negative impact on profitability, mission, performance, or reputation.  
5.2 Addressing and reporting losses provides indicators of needed potential action by decision makers.  
5.3 Though the term equipment is used consistently throughout this practice, this process may be used for the other classes of property, for example, raw material in inventory.  
5.4 This practice does not change any requirements that may be imposed through law, regulations, contract terms, and conditions.
Note 1: When this practice is submitted in response to a contract solicitation and evaluated as part of a contract award process, this practice may be deemed a representation.
SCOPE
1.1 This practice focuses on addressing and reporting losses of tangible property.  
1.2 Loss occurrences are key aspects of risk management. Projecting the possibility or probability of losses, discovering, disclosing, reporting, managing, and minimizing losses to a reasonable extent is a critical economic factor in the success of the owning or holding entity. This practice also establishes acceptable levels of losses.  
1.3 Losses are often discovered as a result of an occurrence, a physical inventory, property custodian or entity self-assessment, or external audit. An actual loss occurrence can be at any time during the property life cycle.  
1.4 Assessing and determining financial liability for losses is not addressed in this practice; such assessments are generally subject to individual contracts or other arrangements.  
1.5 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety, health, and environmental practices and determine the applicability of regulatory limitations prior to use.  
1.6 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.

General Information

• Status: Published
• Publication Date: 31-Jul-2022
• ICS: 91.120.01 - Protection of and in buildings in general
• Technical Committee: E53 - Asset Management
• Drafting Committee: E53.04 - Reutilization and Disposal

Relations

• Refers: ASTM E3015-15(2020) - Standard Guide for Management of Customer-Owned Property Assets in Possession of Supplier, Contractor or Subcontractor
• Effective Date: 01-Jul-2020
• Refers: ASTM E2279-20 - Standard Practice for Establishing the Guiding Principles of Property Asset Management
• Effective Date: 01-Jul-2020
• Refers: ASTM E2608-20 - Standard Practice for Equipment Control Matrix (ECM)
• Effective Date: 01-Jul-2020

Standards Content (Sample)

This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the
Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.
Designation: E2131 − 16 (Reapproved 2022)
Standard Practice for
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Addressing and Reporting Losses of Tangible Property
This standard is issued under the fixed designation E2131; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1. Scope E2279 Practice for Establishing the Guiding Principles of
Property Asset Management
1.1 This practice focuses on addressing and reporting losses
E2378 Practice for the Recognition of Impaired or Retired
of tangible property.
Property Assets
1.2 Loss occurrences are key aspects of risk management.
E2608 Practice for Equipment Control Matrix (ECM)
Projecting the possibility or probability of losses, discovering,
E3015 Guide for Management of Customer-Owned Property
disclosing, reporting, managing, and minimizing losses to a
Assets in Possession of Supplier, Contractor or Subcon-
reasonable extent is a critical economic factor in the success of
tractor
the owning or holding entity. This practice also establishes 3
2.2 ISO Standard:
acceptable levels of losses.
ISO 31000 Risk Management
4
1.3 Losses are often discovered as a result of an occurrence,
2.3 Federal Standard:
a physical inventory, property custodian or entity self-
FAR Federal Acquisition Regulations
5
assessment, or external audit.An actual loss occurrence can be
2.4 Other Document:
at any time during the property life cycle.
Risk Management Guide for DOD Acquisition, Sixth Edi-
tion
1.4 Assessing and determining financial liability for losses
isnotaddressedinthispractice;suchassessmentsaregenerally
3. Terminology
subject to individual contracts or other arrangements.
3.1 Definitions—For definitions relating to property and
1.5 This standard does not purport to address all of the
asset management, refer to Terminology E2135.
safety concerns, if any, associated with its use. It is the
3.2 Definitions of Terms Specific to This Standard:
responsibility of the user of this standard to establish appro-
3.2.1 acquisition cost, n—cost to buy goods, services, or
priate safety, health, and environmental practices and deter-
assets, minus discounts and adding relevant costs based upon
mine the applicability of regulatory limitations prior to use.
accounting standards.
1.6 This international standard was developed in accor-
3.2.2 entity, n—an agency, company, or institution.
dance with internationally recognized principles on standard-
ization established in the Decision on Principles for the
3.2.3 equipment, n—tangible item that is functionally com-
Development of International Standards, Guides and Recom-
plete for its intended purpose, durable, nonexpendable, and
mendations issued by the World Trade Organization Technical
needed for the performance of a contract. Equipment is not
Barriers to Trade (TBT) Committee.
intended for sale, and does not include material, real property,
special test equipment, or special tooling. FAR Part 45
2. Referenced Documents
3.2.4 loss of property, n—unintended, unforeseen or acci-
2
2.1 ASTM Standards:
dental loss, damage, or destruction of property that reduces the
E2132 Practice for Inventory Verification: Electronic and
expected economic benefits of the property.
Physical Inventory of Assets
3.2.4.1 Discussion—Loss of property does not include oc-
E2135 Terminology for Property and Asset Management
currences such as purposeful destructive testing, obsolescence,
normal wear and tear, or manufacturing defects. Loss of
1 property includes, but is not limited to:
This practice is under the jurisdiction of ASTM Committee E53 on Asset
Management and is the direct responsibility of Subcommittee E53.04 on Reutiliza-
tion and Disposal.
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Current edition approved Aug. 1, 2022. Published August 2022. Originally Available from National Institute of Standards and Technology (NIST), 100
approved in 2001. Last previous edition approved in 2016 as E2131-16. DOI: Bureau Dr., Stop 1070, Gaithersburg, MD 20899-1070, http://www.nist.gov.
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10.1520/E2131-16R22. Available from https://www.acquisition.gov/.
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For referenced ASTM standards, visit the ASTM website, www.astm.org, or Available from Defense Acquisition University, 9820 Belvoir Road, Fort
contact ASTM Customer Service at [e-mail]. For Annual Book of ASTM Belvoir, VA 22060,
Standards volume information, refer to the standard’s Document Summary page on https://www.dau.edu/cop/pqm/DAU%20Sponsored%20Documents/
the ASTM website. 2006%20RM%20Guide%204%20Aug%2006Final.doc.
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