INTERDEPARTMENTAL MEMORANDUM

Asset Management Directive #3a

To:   Chief Administrative and Fiscal Officers, Business Managers, Core-CT Asset Management Module Personnel
From:   Brenda K. Halpin, Director
   Administrative Services Division
   Office of the State Comptroller
   55 Elm Street
   Hartford, CT 06106
Date:    September 17, 2010
Re: Implementation of GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets - Permanent Land Easements

Purpose

The purpose of this Asset Management Directive #3a is to respond to questions regarding the implementation of GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets with regards to permanent land easements effective with the fiscal year ending June 30, 2010.

Frequently Asked Questions

Q. What does the word permanent mean?
A. It means any easement that a) has an indefinite useful life or b) has a useful life of 25 years or more.
 
Q. If an easement was purchased with land does the easement need to be recorded and reported separately?
A. No, the land is the primary purchase and the easement should have been included as part of the purchase price and reported as land owned by the State.

Conclusion
Questions regarding this directive should be directed to OSC.Assets@po.state.ct.us

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