[Code of Federal Regulations]

[Title 48, Volume 7]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR9904.404-30]



[Page 364-365]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

     CHAPTER 99--COST ACCOUNTING STANDARDS BOARD, OFFICE OF FEDERAL 

           PROCUREMENT POLICY, OFFICE OF MANAGEMENT AND BUDGET

 

PART 9904_COST ACCOUNTING STANDARDS--Table of Contents

 

Sec. 9904.404-30  Definitions.



    (a) The following are definitions of terms which are prominent in 

this standard. Other terms defined elsewhere in this part 99 shall have 

the meanings ascribed to them in those definitions unless paragraph (b) 

of this subsection, requires otherwise.

    (1) Asset accountability unit means a tangible capital asset which 

is a component of plant and equipment that is capitalized when acquired 

or whose replacement is capitalized when the unit is removed, 

transferred, sold, abandoned, demolished, or otherwise disposed of.

    (2) Original complement of low cost equipment means a group of items 

acquired for the initial outfitting of a tangible capital asset or an 

operational unit, or a new addition to either. The items in the group 

individually cost less than the minimum amount established by the 

contractor for capitalization for the classes of assets acquired but in 

the aggregate they represent a material investment. The group, as a 

complement, is expected to be held for



[[Page 365]]



continued service beyond the current period. Initial outfitting of the 

unit is completed when the unit is ready and available for normal 

operations.

    (3) Repairs and maintenance generally means the total endeavor to 

obtain the expected service during the life of tangible capital assets. 

Maintenance is the regularly recurring activity of keeping assets in 

normal or expected operating condition while repair is the activity of 

putting them back into such condition.

    (4) Tangible capital asset means an asset that has physical 

substance, more than minimal value, and is expected to be held by an 

enterprise for continued use or possession beyond the current accounting 

period for the service it yields.

    (b) The following modifications of terms defined elsewhere in this 

chapter 99 are applicable to this Standard: None.