Property & Equipment are the tangible or intangible assets that are owned by the business or legal entity.
Assets must meet two (2) requirements:
Assets must be owned by the business or legal entity.
Assets must have a money value.
Organizations need to maintain, track and value assets for financial reporting, tax compliance, internal control and asset management to answer key questions:
- Where is the asset located?
- What is the assets status?
- What events are associated with an asset?
- Who supplied, maintains and is responsible for the asset?
- What business metrics are associated with the asset?
Asset financial reporting is an important responsibility since the depreciation, incurred costs, improvements and similar costs involving the asset can dictate the replacement or ongoing usage of the asset.
The Property & Equipment Business Area Model is focused upon the data required to track, value and report assets within the organization.
| Asset | Repairs |
| Location | Utilization |
| Responsible Organization | Replacement Value |
| Assessment | Asset Appropriation |
| Depreciation | Budget/Budget Item |
| Salvage Value | Payback Period |
| Responsible Organization | Rate Of Return |
| Maintenance | |
The Property & Equipment Business Area Model integrates with the Accounting & Financial Reporting data model to provide the links to the organization's financial accounting and reporting data.
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