Title: FRB: Financial Accounting Manual
Headings: Financial Accounting Manual for Federal Reserve Banks, January 2017
Financial Accounting Manual for Federal Reserve Banks, January 2017
Chapter 3. Property and Equipment
30.01 General
30.05 Historical Information
30.06 Publication of Property and Equipment Information
30.10 Land
30.15 Land Improvements
30.20 Building
30.25 Building Machinery and Equipment
30.30 Construction Account
30.40 Examples of Classification of Capitalized Bank Premises Assets
Land Improvements
Building
30.45 Furniture and Equipment
30.46 Examples of Classification of Capitalized Furniture and Equipment Assets
30.47 Methods of Capitalization--Furniture and Equipment
30.50 Equipment
30.55 Pooled Asset Method
30.56 Pooled Asset Depreciation
30.57 Pooled Improvements (or Betterments)
30.58 Disposals and Trade-ins of Pooled Asset Items
30.70 Expenditures for Existing Buildings and Equipment
Additions:
Improvements:
Replacements:
30.71 Capitalization Thresholds
30.72 Capitalization Thresholds Table
30.75 Depreciation
30.76 Depreciation Rate and Salvage Value
30.78 Maximum Useful Lives and Salvage Values Table
30.80 Operating and Capitalized Leases
30.81 Lease Incentives
30.85 Leasehold Improvements
30.86 Amortization of Leasehold Improvements
30.87 Tenant Improvements
30.90 Disposals and Trade-ins
30.95 Asset Impairment
Asset Grouping
Is this asset (group) available for sale?
Evaluating for Impairments
Does the carrying value (book value) exceed the amount that can be recovered (undiscounted net cash flows)?
Asset Fair Value and Impairment Loss Based on the Difference between Carrying Value and Fair Value
Fair Value
Other Costs Associated with Exit Activities
30.96 Sale or Transfer of Assets to Another Office
30.97 Other Real Estate
31.00 Real Estate Reporting Requirements
References
Other Formats

Content: 144, Accounting for the Impairment or Disposal of Long-Lived Assets. Accordingly, write-downs of property and equipment occur periodically as a result of adjusting assets to their estimated fair values. ( See paragraph 30.95 .) Prior to 1996, construction costs for improvements or additions to a building were capitalized as part of the original building only if the addition or improvement significantly increased the useful life of the building beyond the current depreciation schedule or added functionality or space, in accordance with generally accepted accounting principles. In practice, ensuring accounting consistency for large improvement projects became burdensome, especially as some buildings approached the end of their initial useful lives. Since 1996, improvements to existing buildings are evaluated, capitalized, and depreciated as separate assets as a practical expedient. Accordingly, underlying asset values are not adjusted for capitalized improvements regardless of when the underlying asset was acquired. Improvement assets and accumulated depreciation, however, are adjusted if replaced or modified by a subsequent capitalized improvement and charged to depreciation expense. Accounting for Asset Retirement Obligations (FASB ASC Topic 410-20; formerly SFAS 143, as interpreted by FIN 47, requires recording an asset and related liability for conditional asset retirement obligations, such as the legal requirement to remediate environmental hazards in land and buildings (for example, asbestos).