[CANUFNET] Tangible Capital Asset Registry - Reporting Trees and Urban Forest Assets

[pwynnyczuk at richmondhill.ca]

Hello Russell,
My understanding is that Trees are not going to be part of the process as 
they do not have to be accounted as a tangible capital asset. 
This is part of  a project called PSAB 3150

If you can access this site   http://www.amcto.com/home.asp

There is an interpretation from the Association in a newsletter within the 
site.

I have been advised by our Finance Staff that we do not have to pursue 
this.
Hope this helps
Regards,
Peter Wynnyczuk



"Friesen, Russell" <Russell.Friesen at calgary.ca> 
Sent by: canufnet-bounces at list.web.net
 
03/14/2008 06:41 PM
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[CANUFNET] Tangible Capital Asset Registry - Reporting Trees and Urban 
Forest Assets






Tangible Capital Asset Registries are topic that has great implications 
for municipal forestry operations across the country, but I am pretty sure 
most CANUFNET subscribers have probably never even heard of it.  Around 
2005, the Public Sector Accounting Board (PSAB) recommended that 
governments including municipalities report "Tangible Capital Assets" 
(TCA) on their balance sheets. In Alberta, this recommendation became law 
and is now a legislative requirement commencing Jan. 1 2009. The Province 
of Ontario also appears to have similar requirements, and many 
municipalities in that jurisdiction are well on their way to reporting 
TCA. 
 
Unfortunately, there does not appear to be a standard practice or 
consensus on how to report trees.  The advice given by the PSAB isn't 
specific and opinion from other sources is contradictory, ranging from 
don't report the value of trees, to report the value of trees that were 
planted with a purpose (like visual screening), to report the value trees 
as if they were converted to pulp wood.
 
Most municipalities involved in building TCA registries have hired 
consultants to aid with the developing the reporting process. In some 
cases the same consultants have been hired by several municipalities, but 
for ethical reasons the consultants can't share what one municipality is 
doing with another municipality.  All this results in a dearth of guidance 
and information about how to report trees and the urban forest in a 
Tangible Capital Asset Registry. 
 
Therefore, I think that it is important for municipal foresters to share 
with each other what they know about TCA registries, what their TCA will 
report, how their reporting policy is worded and how they are going to 
track, collect and manage their asset reporting in subsequent years. . 
 
So now for my questions. 
 
Which other municipalities are in the process of building their TCA?
How are you planning on reporting trees? 
Have you tried to make the case that tree appreciate in value rather than 
depreciate? ... and how did that go? 
Are you using historic costs of acquisition (planting) for your starting 
point and depreciating from there? 
Are you reporting individual trees or lumping trees into a general average 
land improvement value? 
What is your useful lifespan for a tree? 
How are you taking into account vintages? 
And my final question, does anybody - anywhere, understand this? 
 
Thank You 
Russell Friesen
Urban Forestry Coordinator 
City of Calgary Parks 
 
 
 
 
 
 
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