Standard definition Penilai International (International Standards valuation-IVS)
Depreciated Replacement Cost - DRC) is the method of application of the approach Cost Approach, which is used to determine the value of the property for a special purpose financial reporting, market data which is not directly available or limited.
Market value is defined as the estimated amount of money on the assessment, which can be obtained from the sale and purchase transaction or an exchange of property, among buyers who are interested to buy the seller who are interested to sell, in a transaction-free bonds, the marketing is done efficiently, in which both each party to act on the basis of the understanding that it has, carefully and without coercion.
Obsolescence (Obsolescence). Losses in the form of a decrease in use of the property because of the depreciation, changes technologic, behaviour changes, patterns and impact the environment. Obsolescence sometimes classified with the design and function of the mold, the building components with the structural design is not able to meet the needs at this time, and the factors that arise outside of assets such as changes in demand.
Optimization (Optimisation). The process is a substitute for the lowest cost option determine the remaining service potential of an asset. This is a process of adjustment to reflect the cost of that asset may be experiencing technical obsolescence or have been used beyond capacity, or have assets that exceed the capacity of the required capacity.
Public Building (Public Building). A building that serves the community (community) and some social function, which is owned by the state directly or indirectly. For example the court building, the local government, schools, prisons, police post, military facilities, libraries, hospitals, clinics and social or public housing.
Asset Public Sector (Public Sector Assets). An asset that is owned or occupied by government or government entity quasi, to provide goods or services to the public. Assets in the public sector consists of different types of assets, including assets in conventional assets as historic or protected, infrastructure assets, assets that provide public utility functions, assets recreational, and public buildings (that is, military facilities). Each category represents the Property, Machinery and Equipment (PMP) in IPSASs and IFRSs.
Assets in the public sector in general include:
Assets, which have a period of time (the period of ownership) that does not necessarily.
With the land sale or lease restrictions, and
Land intended for use and does not need to meet and use of Top Open.
Public utilities, the property is: produce goods or services for public consumption; and generally shaped monopoly or monopoly quasi as a form of government control.
Recreational assets. Property that is in public ownership: managed by or on behalf of national, regional government or local government authority, and provide recreation services for use by the general public. Examples include parks, play parks, green path, pedestrian path, a swimming pool, and others.
Service is a potential capacity of the assets to continue the provision of goods and services in accordance with the objectives of the entity.
Value Development (Value of Improvements). That is the value added to land as a result of the building, structure or modifications to land a permanent, including the cost of labor and capital, which is intended to increase the value and use of property.
In the definition Asset Accounting Standard International Public Sector (International Public Sector Accounting Standards - IPSAS)
Assets of Income (Cash Generating Assets), the assets with the goal of domination of the highest (return) the commercial (IPSAS 21.14)
Depreciable Amount. The cost of the amount of another asset or as a replacement cost of assets less the value of the rest (IPSAS 17.13)
Depreciation (depreciation). Systematic allocation of the number of depreciation throughout these assets Age Benefits. (IPSA 17:13 and IPSAS 21.14).
State-Owned / BUMN (Government Business Enterprise). Entity that has the following characteristics:
has the authority to perform the contract on behalf of entity own;
obtain task as financial and operational authority to run the business;
sell goods and services in the normal scope of business to another entity for a profit or cost of a full refund.
entities supervised by the public sector (IPSAS 21.14)
Historical assets (Heritage Assets). Assets that have cultural value, environmental or historic importance. Characteristics:
Economic benefits in terms of culture, environment and education, and history does not always reflect the financial value based on market prices;
legal obligations may cause the prohibition to sell this asset;
usually can not be replaced Economic benefits and may increase over time to run, even when the physical condition of the decline; and
difficult to estimated Age Benefits, in some cases can reach hundreds of years.
(IPSAS 17.9)
The decline in value (Impairment). The loss of economic benefits or services from a potential asset in the future based on the recognition of the systematic loss of economic benefit or service potential through depreciation. (IPSAS 21.14)
Infrastructure assets
Assets that have the following characteristics:
is part of a system or network;
is special and does not have an alternative use;
can not be moved;
have limitations in the sale.
(IPSAS 17.21)
Assets of non-Income (Non-Cash Generating Assets). Assets of assets other than income. (IPSAS 21.14).
The number of services that can Retrieved Back (Recoverable Amount Service). A higher value between fair asset value of the income is not reduced by the cost of sales and value in use (IPSAS 21.14).
Age Benefits (Useful life):
period where the asset is expected to be used by the entity or
the number of production or similar units that are expected to be obtained from the entity's assets. (IPSAS 17:13, IPSAS 21.14).
Value in use for assets not produce income. Now is the value of the remaining potential of assets. (IPSAS 21.14).
Relations with the Accounting Standard
PPI is applying the principles of assessment in the SPI 1, SPI 2, SPI 3, PPI and 1 to meet the IPSAS.
PPI is mainly aimed at the needs assessment in accordance IPSAS 17 (Exposure Draft, September 2005), Property, Machinery and Equipment (PMP); and IPSAS 21, Physical Assets Depreciation not produce income. Due to the revision of IPSAS 17, it is possible the emergence of the needs assessment will be more required.
