CDL: Collection depreciation (GASB)

From: John P. Abbott <AbbottJP_at_conrad.appstate.edu>
Date: Tue, 11 Sep 2001 10:35:26 -0400
To: colldv-l_at_usc.edu
From:   Bonnie.Allen_at_orst.edu

Re:  Collection Valuations

GASB 34/35 is a new standard for capital asset reporting for government.  It
has a 10 year depreciation schedule for library collections
based upon expenses for each of the 10 years. This dramatically reduces the
valuation of the collection that has been used for insurance purposes in the
past.  Special Collections will require an appraisal but is not included in
this depreciation table.

How are other campuses handling this new standard?  

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Bonnie Allen
Associate University Librarian,
for Collections and Technical Services
Oregon State University
121 The Valley Library
Corvallis, OR 97331-4501
(541)737-8528
FAX (541) 737-3453


===Response #1

Our auditor's office has also been asking questions related to collection
depreciation that I suspect are related to the "Governmental Accounting
Standards 
Board (GASB) Statements No. 34 and No. 35, _Basic Financial Statements and 
Management's Discussion and Analysis for State and Local Governments and 
Public Colleges and Universities_." No. 34/45 set forth new financial 
reporting requirements for public colleges and universities.  I found this 
enlightened answer from the State of Texas Comptroller to a question 
from Austin Community College re: 

 source: http://www.cpa.state.tx.us/comptrol/san/gasb/gasb34_qai11.html

'QUESTION I.11: Depreciation for library books 

Date Question Answered:   11/30/00 

Requestor's Agency:  Austin Community College 

Question:  At the end of FY '00 our book shows that we have an accumulated 
balance of $2,800,000 for library books. If we want to start to depreciate 
our library books in FY 01. How do we go about to depreciate this $2,800,000? 
Thanks for all your helps.

Answer:  The state's methodology for library books and materials will be 
to classify them as inexhaustible assets that should not be depreciated.
Library books and materials have an economic benefit or service potential 
that is usedup slowly and their estimated useful lives areextraordinarily 
long. Some books have a cultural, aesthetic, or historical value, and efforts 
are usually applied to protect and preserve these assets in a manner greater 
than that for similar assets without such cultural, aesthetic, or historical 
value. Therefore, the state will not depreciate its library books and 
materials. '

source: http://www.cpa.state.tx.us/comptrol/san/gasb/gasb34_qai11.html


John P. Abbott
Coordinator, Collection Development
Appalachian State University
Boone, NC  28608
abbottjp_at_appstate.edu
Received on Tue Sep 11 2001 - 07:37:39 EDT