7.1.11 In case of transfer of property to another AO, the PAR shall be cancelled and a new one shall be issued to the new AO.
7.1.12 Requisition of PPE shall be supported with an approved PR.
7.1.13 Purchases shall be covered by PO/Contract.
7.1.14 All deliveries shall be covered by AIR as shown in Annex 27.
7.1.15 The purchase, construction and other forms of acquisition of supplies, property and equipment shall be governed by the implementing rules and regulations of RA 9184, “an Act providing for the modernization, standardization and regulation of the procurement activities of the government and for other purposes”.
7.1.16 Repairs and maintenance shall be charged to appropriate repairs and maintenance expense account of the specific assets or property, plant and equipment account.
7.1.17 The disposal of property and equipment shall be governed by existing COA regulation on the matter.
7.1.18 The barangay shall conduct an annual physical inventory of all supplies, property and equipment of the barangay.
7.1.19 Report on the results of physical inventory of property/equipment shall be reconciled with the accounting records.
7.1.20 Property and equipment which have become unserviceable or no longer needed shall be returned to the BT and shall be disposed or sold at public auction, subject to applicable rules and regulations.
7.1.21 Depreciation of Investment Property and PPE shall be computed using the straight-line method after deducting a residual value equivalent to 5 per cent of the cost of the property and equipment.
7.1.22 Depreciation shall start on the month when the PPE is already available for use.
7.1.23 Impairment of Investment Property and PPE shall be recognized on the appropriate impairment loss of cash and non-cash generating assets accounts.
7.1.24 It shall be measured on initial recognition and at each reporting date at its fair value less costs to sell, except in the case where the fair value cannot be measured reliably.
7.1.25 Agricultural produce harvested from an entity's biological assets shall be measured at its fair value less costs to sell at the point of harvest.
7.1.26 A gain or loss arising on initial recognition of a biological asset at fair value less costs to sell and from a change in fair value less costs to sell of a biological asset shall be included in surplus or deficit for the period in which it arises.
7.1.27 A gain or loss arising on initial recognition of agricultural produce at fair value less costs to sell shall be included in surplus or deficit for the period in which it arises.
7.1.28 Revaluations of biological assets shall be recognized on the increases or decreases of assets due to transformation.
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