USA Reclassifyng Inventory to PPE

Oct 19, 2021
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United States
We provide utilities to the University and we have items such as transformers, pumps motors which are used to support the University's infrasctructure and provide utilities. My boss wants to reclassify these rotating items (because they are taken out of other equipment, sent out for repair and placed back in inventory.
My question is, does this constintute a change in accounting estimate or accounting principle. The value of the items is 6 to 7 million and the age goes back 50 to 60 years. My concern is that it is a change in accounting estimate that will have to be approved higher up and may catch the attention of the auditors and will require a financial statement disclosure.


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