USA Reclassifyng Inventory to PPE

Joined
Oct 19, 2021
Messages
1
Reaction score
0
Country
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.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Members online

No members online now.

Forum statistics

Threads
11,782
Messages
27,851
Members
21,793
Latest member
nextgenaccountant

Latest Threads

Top