Scribd
Upload
25 views2 pages

Recording of Properties Held For Others

Uploaded by

alh.workday
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
25 views2 pages

Recording of Properties Held For Others

Uploaded by

alh.workday
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

RECORDING OF PROPERTIES HELD FOR OTHERS

R ELEVENT S EVENTH - DAY A DVENTIST A CCOUNTING M ANUAL


P RONOUNCEMENT :
SDAAM 13A.08 Properties Used By Local Congregations - These
properties are unique because they are paid for and operated by local
congregations. Because accounting and reporting at the local congregation
level reflects only operating activities, it is imperative that organizations
follow GCWP S 60 10 as quoted earlier. Because the use of these local
properties is under the direction and control of a local conference, mission,
or field, this Manual considers GCWP S 60 10 to be an appropriate
application of IAS 16.7 (outside the USA) for these kinds of properties.

This preserves a record of the original cost of the property and at the same
time, by carrying a nearly equal amount in a contra account, does not inflate
the total asset value of the reporting entity. In its responsibility for the
“sisterhood” of churches, the reporting entity is, in a sense, holding these
properties for use by the local congregations. It must be emphasized that
this special depreciation or contra account is limited to properties used by
local congregations. Properties used directly for the operating activities of
the reporting entity (office buildings, youth camps, housing for employees,
etc.) must be depreciated in the normal way as described in Section 1303.

R ECOMMENDED A CCOUNTING T REATMENT IN S UN P LUS :


The new SDA Accounting Manual allows the offsetting of the gross amount by
recording either a contra account amount or a special depreciation amount.
SunPlus suggests the use of a special depreciation account rather than a contra
account. This means, during implementation, we record the gross value and at
the same time upload the full amount of the gross as allowance for depreciation.
“Estimated Life” should be populated (so we could easily tell the age of the asset
in future), and “Depreciation Method” must be set to “No Depreciation”. Coding
Nomenclature for Church/School Related Assets:
A. Natural Accounts
207207 = “Church and School Properties” = Gross Value
209207 = “Church and School Properties” = Accumulated
Depreciation

B. Asset Register Coding Details = ZCxxx/ZSxxx


Z = to display the asset at the bottom of the asset register listing
C = for Church-related properties
S = for School-related properties
XXX = 001 to allow duplicates

C. Asset Function Codes and Asset Posting Presets = NOIXXX


NOIBAF = Buildings & Furnishings
NOILAN = Land
NOILIM = Land Improvement

D. Asset Detail Dimension Codes = ZXXXXX01 (To be used in producing the


property listing for each church)
Z = to display the asset at the bottom of the details dimension listing
XXXXX = first 5 characters of the name of the church
01 = to allow duplicates
Examples:
ZCENTR01 = Central Church Building
ZCENTR02 = Central Church Land

You might also like