Cost and Depreciation
Original Cost vs. Current Value
Your department’s assets are listed at
their original cost (amount paid at purchase). Even though an asset
may no longer have the same value as the original cost, the item
stays on your inventory at original cost until it is removed from
your department’s custody.
Example
|
Original cost of a computer purchased
7 years ago
|
Current value of the computer
**CAMS
does not calculate current value**
|
Value reported on your CAMS inventory
report
|
|
$8,500
|
$2,000
|
$8,500
|
Regardless of its current value, the item will
remain on the department’s inventory at original cost until
it is reported as surplus, transferred, lost, stolen or scrapped.
Depreciation
When using the “Browse Records” view on the online CAMS
system, you will see depreciation information for your assets. Depreciation
is a financial method that spreads the cost of an asset over a determined
financial life, or useful life. Each year, more dollars are added
to the depreciation account named accumulated depreciation. An asset
is fully depreciated when the amount of accumulated depreciation
equals the cost of the asset.
The useful life of an asset is an estimate. The useful life for
an asset is determined using the Federal General Depreciation System
lives. These lives are within the guidelines set by the Office of
the State Controller.
Even though an asset on your inventory may be fully depreciated,
the item will not be removed from your inventory. The asset will
remain on the department’s inventory listing until the department
no longer has custody of it.
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