ACCOUNTING FOR PROPERTY DISPOSITIONS - SALE OF PROPERTY - 8641
Accounting for capital assets/property sales differs depending on the Generally Accepted Accounting Principles (GAAP) classification of the owner fund.
- Governmental Funds
Capital assets/property sold by governmental funds are removed from the asset accounts of the governmental fund (Legacy-Capital Assets Group of Accounts). Sale proceeds are recorded as miscellaneous revenue.
- Proprietary Funds
Capital assets/property sold by proprietary funds are depreciated up to the date of sale and removed from the asset accounts of the proprietary fund. Gains and losses are recognized to the extent that sales proceeds are more or less than the net book value of the asset.
- Fiduciary Funds
Capital assets/property sold by fiduciary funds are removed from the asset accounts of the fiduciary fund. Sale proceeds are recorded as miscellaneous revenue.
Per SAM section 10220, sale proceeds from capital assets/property budgeted to be sold and replaced with new capital assets/property may be accounted for as an abatement. The replacement asset is recorded in the asset accounts at historical cost with no reduction for sales proceeds.