Historical Data Only in the Official Accounting Records
FIN-ACC-380
About This Policy
- Effective Date:
- 07-01-1996
See current policy
- Date of Last Review/Update:
- 07-01-1996
- Responsible University Office:
- Financial Management Services
- Responsible University Administrator:
Vice President and Chief Financial Officer
- Policy Contact:
- Joan Hagen
Associate Vice President
and University Controller,
Office of the Controller
jhagen@iu.edu
- Policy Feedback:
- If you have comments or questions about this policy, let us know with the policy feedback form.
Policy Statement
All transactions, either cash or accrual basis, should be recorded at historical costs.
Reason for Policy
The information recorded into the Kuali Financial System (KFS) should be the most accurate reflection of what the costs and revenues are. The basis for the capital assets should be historical. The replacement value of capital assets should be recorded separately and opportunity costs should not be recorded as part of the official accounting records.
Procedures
The dollars that are recorded into the KFS should have source documents that verify the accuracy of the amount entered into the KFS. There should not be any additional amounts added to the historical costs.
Definitions
Historical Cost: The net cash paid for an expenditure or the capitalized value of an asset.
Estimated Transaction: An accounting transaction which is probably going to take place and the dollar amount of the transaction can be reasonably estimated.
Accrual Document: A document used to record an accounting transaction that does not affect cash.
History
The source to this policy is:
Cost Accounting Standards (CAS) 9905.501, Consistency in estimating, accumulating and reporting costs by educational institution, CAS 9905.502, Consistency in allocating costs incurred for the same purpose by educational institutions, and Chief Accountant
Please note: This is an archived version of the policy. View the current version.