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

Unserviceable PPE are derecognized from the books of accounts only after its disposal.

PPE reported in the IIRUP shall be dropped from the books by debiting Impairment Loss-Property, Plant and Equipment.

(Reference: Section 39 and 40, Chapter 10, GAM for NGAs, Vol. I)

Unserviceable PPEs are only dropped from the books after the disposal.

  • The asset shall remain in the books until these are sold/disposed.
  • 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.
  • 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.

(Reference: COA Manual on Appraisal of Government Properties)

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