ACCOUNTING FOR PROPERTY ACQUISITIONS - TRANSFER - 8633

State agencies/departments (transferees) which acquire capital assets/property free of charge or significantly discounted from other state agencies/departments (transferors) will record the capital asset/property at the same historical cost as that recorded on the books of the transferor agency/department. If the historical cost is not available, the acquisition value price should be used (i.e., the price that the agency/department would have had to pay to purchase an equivalent asset on the date of the transfer). The transferee will record the asset as a beginning balance adjustment (for transfers to governmental funds) and submit the Report 18 Beginning Balance Differential Report (SAM section 7977 Illustration 2) with their year-end financial reports.

Assets of Abolished Funds

Per Government Code section 16346, when a fund is abolished, the assets, liabilities and surplus of that fund become part of the successor fund identified in the abolishing statute. If language is absent identifying a successor fund, the fund will become part of the General Fund. In the event that a fund is abolished, the capital assets of that fund should be transferred to the successor fund identified in the Manual of State Funds. Capital assets transferred to a governmental fund will be reported as a restatement of beginning balance and agencies/departments will submit the Report 18 Beginning Balance Differential Report (SAM section 7977 Illustration 2) with their year-end financial reports.