What are semi-expendable items and how should it be recorded in the books?

Semi-expendable items are small tangible items with estimated service life of more than one year and individual cost of each is below the capitalization threshold of P15,000.00.

These small tangible items shall be accounted as inventories upon purchase and recognize as an expense upon issuance to the end-user.

However, items with individual values below the threshold but which work together in the form of group of network asset and whose total value exceeds the threshold shall be recognized as part of the primary PPE (example: printers).

(Ref.: GAM for LGUs and COA Circular 2005-02 dated April 14, 2005)

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