When is it appropriate to drop unserviceable PPEs from the books? Is it after disposal or upon preparation of the Inventory and Inspection Report of Unserviceable Property (IIRUP)?

The COA Manual on Appraisal of Government Properties states that:

  1. The asset shall remain in the books until these are sold/disposed.
  2. When the property is sold, this report, together with the sales report and other supporting documents shall serve as basis in preparing the JEV to drop the assets from the books .
  3. All Property Acknowledgement Receipt (PAR) covering the PPE shall be cancelled so that the end user shall be relieved from his/her accountability over the property

Therefore, unserviceable PPEs must be derecognized from the books only after disposal.

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