ASTM E2132-01(2007)

Standard Practice for Physical Inventory of Durable, Moveable Property

SIGNIFICANCE AND USE
Physical Inventory—The primary product of a physical inventory is a report identifying, at a minimum, which items were located and which were not. The number and value of unlocated items constitute an organization’loss experience, which is critical for assessing the organization’property control risk and success. Unlocated items that are capitalized on an organization’financial records are generally written off at the close of the inventory (and therefore physical inventories are important to ensuring that public financial statements are accurate). Physical inventories have several byproducts as well. During the inventory, record deficiencies, such as incorrect locations or unrecorded property items are identified; these records are corrected as part of the process. Finally, physical inventory serves as a deterrent to loss, theft, damage, and misuse as those responsible for property perceive that they will be held accountable for it and be required to produce it on a periodic basis. In summary, physical inventories are conducted to accomplish one or more of the following:
2.1.1 Assess the accuracy of property records,
2.1.2 Update property records,
2.1.3 Assess property loss experience,  
2.1.4 Provide the status of capital items for financial reporting purposes, and
2.1.5 Deter misuse, loss, damage, and theft of property.
SCOPE
1.1 This practice covers the physical inventory of durable, moveable property. Physical inventory is a vital part of a property control system.

General Information

• Status: Historical
• Publication Date: 30-Apr-2007
• ICS: 13.120 - Domestic safety
• Technical Committee: E53 - Asset Management
• Drafting Committee: E53.01 - Process Management

Relations

• Replaces: ASTM E2132-01 - Standard Practice for Physical Inventory of Durable, Moveable Property
• Effective Date: 01-May-2007
• Replaced By: ASTM E2132-11 - Standard Practice for Inventory Verification: Electronic and Physical Inventory of Assets
• Effective Date: 01-Dec-2011
• Referred By: ASTM E2676-09(2020) - Standard Practice for Tangible Property Mobility Index (MI)
• Effective Date: 01-May-2007
• Referred By: ASTM E2131-16(2022) - Standard Practice for Addressing and Reporting Losses of Tangible Property
• Effective Date: 01-May-2007
• Referred By: ASTM E2811-17 - Standard Practice for Management of Low Risk Property (LRP)
• Effective Date: 01-May-2007
• Referred By: ASTM E3298-21 - Standard Practice for Inventory by Exception (IBE)
• Effective Date: 01-May-2007
• Referred By: ASTM E2452-12(2019) - Standard Practice for Equipment Management Process Maturity (EMPM) Model
• Effective Date: 01-May-2007
• Referred By: ASTM E2135-22 - Standard Terminology for Property and Asset Management
• Effective Date: 01-May-2007
• Referred By: ASTM E2675-22 - Standard Practice for Asset Management System Outcomes
• Effective Date: 01-May-2007
• Referred By: ASTM E2279-20 - Standard Practice for Establishing the Guiding Principles of Property Asset Management
• Effective Date: 01-May-2007

Standards Content (Sample)

NOTICE: This standard has either been superseded and replaced by a new version or withdrawn.
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Designation:E2132–01(Reapproved 2007)
Standard Practice for
Physical Inventory of Durable, Moveable Property
This standard is issued under the fixed designation E2132; 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 3.1.1 A physical inventory is an assessment or audit. An
effective physical inventory provides information of value that
1.1 This practice covers the physical inventory of durable,
equals or exceeds the cost of the activity. For the results to be
moveable property. Physical inventory is a vital part of a
valid and useful, complete the physical inventory by consis-
property control system.
tently applying written procedures. As physical inventories
2. Significance and Use generally measure performance over a period of months or
years and results are often trended, it is desirable to repeat past
2.1 Physical Inventory—The primary product of a physical
inventory practices in order to make results comparable.
inventory is a report identifying, at a minimum, which items
3.1.2 As physical inventories are generally efforts involving
were located and which were not. The number and value of
significant time, resources, complexity, and personnel, appro-
unlocated items constitute an organization’s loss experience,
priate project management techniques should be employed.
which is critical for assessing the organization’s property
Address the elements in 3.2 through 3.13 when planning.
control risk and success. Unlocated items that are capitalized
3.2 Management and Accountability—Assign responsibil-
on an organization’s financial records are generally written off
ity, authority, and accountability for the conduct of physical
at the close of the inventory (and therefore physical inventories
inventory and for the results of the inventory.
are important to ensuring that public financial statements are
3.3 Key Results Required—Prior to planning an inventory,
accurate). Physical inventories have several byproducts as
determinethedecisionsthatwillbemadebaseduponinventory
well. During the inventory, record deficiencies, such as incor-
results and the key results required to make these decisions.
rect locations or unrecorded property items are identified; these
For example, a common decision is whether or not a control
records are corrected as part of the process. Finally, physical
system is effective; the find rate by value or number of items is
inventory serves as a deterrent to loss, theft, damage, and
often used as a key determinant. The number or percent of
misuse as those responsible for property perceive that they will
unrecorded assets (overages) is an indicator of an organiza-
be held accountable for it and be required to produce it on a
tion’s success at achieving control of inbound or newly
periodic basis. In summary, physical inventories are conducted
fabricated assets. All subsequent elements of physical inven-
to accomplish one or more of the following:
tory planning must accommodate measurement of key results
2.1.1 Assess the accuracy of property records,
with sufficient accuracy and precision for decision-making.
2.1.2 Update property records,
3.4 Population:
2.1.3 Assess property loss experience,
3.4.1 Determine the population to be inventoried. A popu-
2.1.4 Provide the status of capital items for financial report-
lation may be defined by equipment type, value, location, age,
ing purposes, and
controllingorganizationorprogram,usestatus,orothercontrol
2.1.5 Deter misuse, loss, damage, and theft of property.
categories.Determinewhethertoconductacompleteinventory
Physical Inventory
of those categories or employ a sampling technique. If sam-
plingtechniquesareemployed,determinethesamplingmethod
3. Physical Inventory Planning
and size before selecting a sample. The sample must be
3.1 General:
adequate to yield data of sufficient accuracy to meet the desired
objectives. If find rates or other data are required for subsets of
the population, for example by organization, then sample sizes
must be sufficient to yield data for those subsets with sufficient
This practice is under the jurisdiction of ASTM Committee E53 on Property
Management Systems and is the direct responsibility of E53.01 on Process
accuracy and precision to be valid and useful.
Management.
3.4.2 The population to be inventoried should be set at the
Current edition approved May 1, 2007. Published May 2007. Originally
beginning of the inventory period and “frozen.” New receipts
approved in 2001. Last previous edition approved in 2001 as E2132 – 01. DOI:
10.1520/E2132-01R07. after the beginning of the period should not be included, nor
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E2132–01 (2007)
should items transferred or disposed be excluded, from physi- 3.12 Training and Communication—Establish a plan to
cal inventory reconciliation and statistics. Establish clear ensure that individuals involved in the physical inventory have
policies for removal of items from the population due to other all necessary skills and information and to ensure that all those
circumstances (for example, if it is determined in the course of affected by the physical inventory are familiar with the
an inventory that an item was previously sold or cannibalized). established objectives, period, population, and validation tech-
niques.
3.5 Independence—Determine the extent to which the
3.13 Project Plan—Determine the individual tasks that will
physical inventory will require data to be drawn from sources
be performed, and determine their order, time periods, depen-
independent of those responsible for property. Independent
dencies, and resource requirements.
data sources are more accurate but can be more expensive to
employ. Use barcode scanners or other electronic devices to
4. Procedure
ensure data accuracy without independence.
4.1 Conduct the physical inventory in accordance with the
3.6 Data Requirements—Beyond the key results, determine
written plan and procedures. Document deviations and anoma-
the need to verify or update various data elements (based upon
lies. Conduct the inventory in such a way that the event could
business needs) during the physical inventory. At a minimum,
be repeated with substantially similar results.
a physical inventory validates the existence and location of
property. Other information may also be verified or updated.
5. Results
Employ floor-to-re
...