TABLE OF CONTENTS

APPRAISAL GUIDELINES.....................................................................
1.0 OBJECTIVES.................................................................................
2.0 SCOPE and LIMITATIONS.............................................................
3.0 DEFINITION OF TERMS................................................................
4.0 GENERAL GUIDELINES................................................................
4.1 Documentation.............................................................................................3
4.2 Conduct of Inspection..................................................................................4
4.3 Determination of Condition Rating of Property...........................................6
4.4 Conduct of Appraisal....................................................................................8
4.5 Determination of the Appraised Value.........................................................9
5.0 REVISED FORMULAE ON APPRAISAL OF GOVERNMENT
PROPERTIES EXCEPT REAL ESTATE, ANTIQUE PROPERTY AND
WORKS OF ART...........................................................................
Illustrative Examples.......................................................................
TABLES......................................................................................................................17
TABLE 1. COMPONENT RATING TABLES
18
TABLE 2. TABLE OF ESTIMATED USEFUL LIFE OF PROPERTY,
PLANT AND EQUIPMENT
23
TABLE 3. TABLE OF PESO/DOLLAR EXCHANGE RATES..........25
ANNEXES..................................................................................................................26
ANNEX A........................................................................................................27
ANNEX B........................................................................................................29
ANNEX C........................................................................................................30
ANNEX C1......................................................................................................32
ANNEX C2......................................................................................................35
ANNEX D........................................................................................................38
ANNEX E........................................................................................................39
ANNEX F.........................................................................................................41

APPRAISAL GUIDELINES
1.0 OBJECTIVES
1.1 To achieve uniformity and consistency in the conduct of
appraisal of government property for disposal;
1.2 To promote facility in the computation of appraised
values;
1.3 To attain more realistic valuations of property under
disposal based on the actual state or condition of
properties being disposed of; and
1.4 To provide a reliable basis of ensuring that government
recovers a fair return from the disposal of its properties.
2.0 SCOPE and LIMITATIONS
These guidelines describe the general procedures in the
appraisal of government properties for disposal of National
Government Agencies and Instrumentalities, Local Government Units
and Government-Owned and/or Controlled Corporations and their
subsidiaries, except works of art, antique property and real estate.
Antique property and works of art shall be appraised by the National
Museum, and real estate shall be appraised under a separate set of
guidelines.

3.0 DEFINITION OF TERMS

Acquisition Cost (AC) the price at which the property was
acquired which also includes related expenses incurred
during the acquisition/construction of the property such
as taxes, license fees, permit fees, clearance fees, etc.
Appraised Value (AV) an opinion of an appraiser which is
based upon an interpretation of facts and beliefs into an
estimate of value, as of a stated date.

Condition Factor (CF) the adjustment factor used to consider

the actual condition of the property under appraisal thru
an evaluation of the state or condition of the major
components of such property relative to an ideally
functioning model. The condition factor is usually
estimated based on the component and condition rating of
the property.
Currency Fluctuation Factor (CFF) refers to the adjustment
factor used to take into account the devaluation or
revaluation of the peso from the year of acquisition to the
year of appraisal.
Current Market Value (CMV) is the price estimated which a
property will bring if exposed for sale in the open market,
allowing a reasonable time to find a buyer who buys with
knowledge of the actual condition and utility of the
property.
Deterioration reflecting the loss in value brought about by
wear and tear, disintegration, use in service and the
action of the elements.
Economic Obsolescence reflecting the loss in value brought
about by external economic forces, such as legislative
enactments restricting or impairing the use of subject
equipment
Effective Remaining Useful Life (ERUL) refers to the number
of years from the date of appraisal to the anticipated date
that a property may be utilized profitably.
Estimated Useful Life (EUL) refers to the estimated period of
time (years) for which a property is anticipated to be
useful assuming normal utilization. See Table 2 for Table
of Estimated Useful Life.
Functional Obsolescence reflecting loss in value due to
functional inadequacy or over adequacy due to size, style
or age brought about by changes in art or poor planning.
Junk/Scrap Value the price of scrap/junk metal or lumber
prevailing in the local market.

Locally Manufactured Properties refers to the properties

which are one hundred percent (100%) sourced locally
and no part of which is imported from other countries.
Price Index Factor (PIF) refers to the adjustment factor which
reflects the changes that occur in the prices of
commodities, raw materials, manufactured goods and the
like from the year of manufacture to the year of appraisal.
(Source: National Statistics Office]
Replacement Cost New (RCN) the cost of construction at
current prices of a property having a utility equivalent to
the property being appraised but built with modern
materials and according to current standards, design and
layout. The use of the replacement cost concept
presumably eliminates all functional obsolescence, and
the only depreciation to be measured is physical
deterioration and economic obsolescence.
Salvage Value the amount that could be realized from the
sale of a component/part of an asset to be removed for
use, wholly or in part, elsewhere.
Sound Value a measure of value widely used by valuers and
appraisers, is derived from replacement cost new (RCN),
adjusted to the observed condition of the property for
appraisal.

4.0 GENERAL GUIDELINES

4.1

Documentation

4.1.1 Before the appraiser commences the inspection of

property to be appraised, he has to check whether the
corresponding form for disposal has been properly
accomplished. The forms used for disposal are:
a) Inventory and Inspection Report of Unserviceable
Property (Annex A)

This form is used for the disposal of vehicles, office

equipment, furniture, and other properties, plant and
equipment which can no longer be repaired or
reconditioned and whose maintenance cost of repair
outweighs or is more than the benefits and services that
will be derived from its continued use.
When
accomplished, this form should contain the list of
valuable parts of the article or equipment which
possesses intrinsic value or which may be useful in
making repairs to other articles or equipment. This form
should also contain the list of missing parts, if any, which
should be accompanied by a certification of the property
officer or custodian as to whether the missing parts were
removed for future stock or have been utilized already for
repair purposes.

b) Waste Materials Report (Annex B )

This form shall be used to report all waste materials
previously taken up in the books as assets so that they
may be properly disposed of and dropped from the
accounts.
This form is used in the disposal of waste materials
which result from the consumption or utilization of
expendable materials, and covers damaged equipment
parts, empty containers, and remnants salvaged from
destroyed or damaged property, plant and equipment.
4.1.2

The appraiser shall likewise accomplish the Checklist

for Unserviceable Equipment. This Checklist for
Unserviceable Equipment shall indicate the individual
component/part of the equipment with their condition,
whether serviceable, unserviceable, missing, etc. The
agency could device their own form most appropriate to
the equipment for appraisal. (See Annex C and D for the
Checklist for Unserviceable Equipment)

4.1.3

If the property to be appraised is no longer available

for inspection, as in the case of lost or burned equipment
for which accountability is being assessed, the appraiser
shall forego the ocular inspection, and proceed to the next
succeeding appraisal step.

4.2

Conduct of Inspection
In the conduct of the inspection of the property to be
appraised, the appraiser shall perform the following,
where applicable:

4.2.1

Identify the property in accordance with its descriptions

in the inventory list or directive.

4.2.2

Verify stated ratings, capacity, model, year of

manufacture, serial number, chassis number, motor
number and other technical specifications, and
accessories, if any.

4.2.3

Determine the correct date when property has been

acquired or its present age/number of years property has
been actually used or operated.

4.2.4

Check the condition of the property; determine whether

operational, under repair, or irreparable.

4.2.5

Check for the damaged, worn-out or missing parts.

Careful determination of its present physical condition
shall serve as basis for its depreciation and correct
evaluation/valuation.

4.2.6

Determine if property is economically repairable and the

most probable cost of its repairs, and current cost of
spare parts.

4.2.7

Determine the extent of use, mileage, rate of depreciation,

and any excessive wear and tear.

4.2.8

Determine quality or degree of maintenance, repair,

restoration or upgrading made, check logbook, if available.

4.2.9

See if property is obsolete or is still being manufactured

and if spare parts are still procurable in the market. If
property is found obsolete, appraise the property as junk.

4.2.10 Determine whether property still has market demand; or

the existence of probable buyers in the locality.
4.2.11 See if property is sheltered or exposed to elements and
theft.
4.2.12 Inspect the location of the properties and the available
facilities for its transportation.
4.2.13 If property is to be disposed of as junk, determine parts
which could be salvaged or profitably used such as
engine, dynamo, wheels, tires, axles, body/chassis, etc. of
motor vehicles.
These salvaged parts could either be transferred to or
used by other equipment or shall serve as its spare or
standby parts.

In cases where there are no equipment which could make

use of these salvaged parts, determine if there are
available buyers of these parts and if disposing them
separately from the equipment would bring the best
returns to the agency.
The objective of the inspection is to supplement
theoretical computations of value with first hand
observation of the condition of the property.
The
depreciation mentioned here refers to observed
depreciation to distinguish the results of personal
inspection from those of theoretical estimates.

4.3

Determination of Condition Rating of Property

4.3.1 The condition rating of the property is obtained based on

the following:
Very Good
(80-100%)

(VG)

Good Condition (G)

(55-75%)

This term describes a property in

excellent condition capable of being
used to its fully specified utilization
for its designed purpose without
being modified and not requiring
any
repairs
or
abnormal
maintenance
at
the
time
of
inspection or within the foreseeable
future
This term describes a property
which has been modified or repaired
and is being used at or near its fully
specified utilization, but the effects
of age and/or utilization indicate
that some minor repairs have to be
made or that the item may have to
be used to some slightly lesser
degree than its fully specified
utilization in the
foreseeable
future.

Fair Condition (F)

(35-50%)

This term describes a property

which is being used at some point
below its fully specified utilization
because of the effects of age and/or
utilization
and
which
require
general
repairs
and
some
replacement
of
minor
elements/components
in
the
foreseeable future to raise its level of
utilization to or near their original
specifications.

Poor Condition (P)

(15-30%)

This term is used to describe a

property which can only be used at
some point well below its fully
specified utilization and it is not
possible to realize full capability in
its
current
condition
without
extensive
repairs
and/or
replacement of major elements in
the very near future.
Scrap Condition (S) This term is used to describe a
property which is no longer
(0-10%)
serviceable and which cannot be
utilized to any practical degree
regardless of the extent of the
repairs or modifications to which
they may be subjected (beyond
economical repair). This condition
is for properties which have used up
100 percent of their useful life or
which
are
100
percent
technologically
,
functionally,
economically or statutorily obsolete
The above Guidelines in Observing Condition of Property were
adopted from the American Appraisal Company, Michigan, and U.S.A.
4.3.2 The gap in percentage allocation is aimed at delineating
the factors between condition categories.
The 4%
difference in each case clearly sets the limits of
percentage range.

4.3.3 The percentage range within each category allows the

appraiser some discretion in assigning a percentage based
on his observation.
4.3.3 The condition rating is the weighted average of the
individual component rating.
-

For furniture and non-mechanized implements which

have no major components but are treated as a whole
unit, condition factor shall be equal to the condition
rating of the unit itself.

Example:
Condition Rating
Condition Factor

4.4

Very Good
0.8 to 1.0

With respect to vehicles, mechanized equipment, etc.

which are made up of several components, the
condition factor is the sum of condition rating x %
weight for all components.
See Table 1 for the
component rating of vehicles, heavy equipment,
window type air-conditioning unit, manual typewriter
and dental equipment. These component ratings were
derived from the price of each component in relation
to the total price of the property expressed in
percentages.

In the case of property which is no longer available for

inspection, as in the case of lost or burned equipment
for which accountability is being assessed, the
condition factor shall be assumed to be 1.0.

Conduct of Appraisal
The Appraisal Process in general consists of:

4.4.1

conducting an ocular inspection of the property to be

appraised to assess its physical condition and to
determine condition rating.

4.4.2

seeking reference price information such as:

acquisition cost, or
current market price of similar property, or
replacement cost for a similar new property;
prices from second hand rebuilders and reconditioners
of machinery, cars or equipment;
- currency exchange rates for acquisition year and
current year.
4.4.3

4.5

computing the appraised value by following the revised

formulae on appraisal of government properties except
real estate, antique property and works of art contained
in Section 5.0 hereof, which will take into account the:
propertys actual physical condition,
the relevant reference price information,
expected useful life of the property, and
the changes in the value of the property caused
by
depreciation, obsolescence, and those caused by
changes in the value of the exchange currency, the
peso, and also appreciation in the value of the property
occasioned by the reconditioning, major repair or
upgrade of the property as well as favorable changes in
the exchange value of the Philippine peso.

Determination of the Appraised Value

4.5.1 Unserviceable property which can no longer be repaired or

reconditioned and waste materials shall be appraised at
scrap or junk value.
4.5.2 For unserviceable property which can still be repaired or
reconditioned, and property no longer needed which are
still functional, shall be appraised based on the following:
4.5.2.1

It shall be appraised on the Current Market

Value (CMV), if such is available.

4.5.2.2

If CMV is not available, it shall be appraised

at its Replacement Cost New (RCN).

4.5.2.3

If CMV and RCN are both not available, the

property shall be appraised at its Acquisition
Cost (AC). If
the property at the time of

10

acquisition is brand new, adjust against

observed condition at the time of appraisal. If
the property was acquired second hand,
condition at date of acquisition must be
defined before any adjustment is made.
4.5.3 The determination of Salvage Value of component/part of
an asset found to be serviceable shall be based on the
hierarchy under 4.5.2 above.
4.5.4 For imported vehicles/mechanized equipment, each
component that has no available local replacement shall
be treated as junk exclusive of the other components
which are available in the domestic market.

5.0 REVISED FORMULAE ON APPRAISAL OF GOVERNMENT

PROPERTIES EXCEPT REAL ESTATE, ANTIQUE PROPERTY
AND WORKS OF ART

5.1

When property is still operational/functional or can be

repaired:
5.1.1 When Current Market Value of a comparable
property is available

AV = CMV x

CF 1
CF 2

where:
AV

CMV
CF1
CF2

Appraised Value
Current Market Value
Condition Factor of the Property being
appraised
Condition Factor of the Advertised/
Canvassed Property

11

When CMV, RCN and AC are all available, CMV

shall be adopted in the computation of the Appraised
Value. The CMV shall be taken from advertised prices
of used equipment of the same make and model or
similar models from newspapers, publications of
associations, etc. of general circulation. There should
at least be two (2) advertised prices for similar
properties, the lowest of which shall be considered as
CMV in the computation of the AV.
5.1.2 When Replacement Cost-New is available - this
formula shall only apply if CMV is not available.
a.

When the Estimated Useful Life (EUL) of the

property is available
ERUL

AV = RCN x
EUL

where:

RCN Replacement Cost - New

ERUL Effective Remaining Useful Life
EUL Estimated useful Life (Table 2)
b.

When the Estimated Useful Life (EUL) of the

property is not available

AV = RCN x

CF

where:
RCN Replacement Cost - New
CF
Condition Factor of the Property
being appraised
5.1.3 When Acquisition Cost (AC) is available, the cost
indicated in the Property Acknowledgement Receipt
(PAR) shall be recognized as AC if the Purchase
Order/Invoice are no longer available. However, if
the PAR indicates, among others, that the property
acquired is second hand (not brand new), the

12

appraiser shall consider the additional expenses

incurred,
if
any,
for
the
reconditioning/rehabilitation of said property.
a. For Imported Properties
AV = (AC x CFF) x CF
where:
AC

Acquisition Cost

CFF Currency Fluctuation Factor

CFF =

P/dollar exchange rate on year of

appraisal
P/dollar exchange rate on year of
acquisition

CF

Condition Factor of the Property

b. For locally Manufactured Properties

- this
formula shall apply to properties which are one
hundred percent 100% sourced locally and no
part of which is imported. (Ex. Furniture, steel
cabinets, etc.)
AV

where:
PIF

PIF

(AC x PIF) CF

Price Index Factor

Price Index on year of Appraisal

Price Index on year of Acquisition

(Source of Price Indices : National Statistics Office, NSO)

5.2

For waste materials and property which are unserviceable

and can no longer be repaired/reconditioned - the end
13

user shall determine the unserviceability of the property

and shall be supported with the History Card/record and
Checklist of Unserviceable Vehicles/Heavy Equipment.
AV = Junk Value
where Junk Value is based on prevailing price of
scrap metal or lumber, whichever is appropriate.
Canvass for the current market price per unit weight
and multiply by the actual weight of the waste
materials/property to get the appraised value.
Computers and their peripherals shall be appraised
based on their junk value due to obsolescence brought
about by the rapid change and development in the
industry.

Illustrative Examples
A. When Current Market Value (CMV) of a comparable property
is available
Given: Based on the data contained under the Inventory and
Inspection Report of Unserviceable Property (Annex A1)
Property Description:
Mitsubishi L-200 D/Cab Pick-up, Diesel Fed Model 1995,
Silver Gray, Loaded, w/Stepboard & Bedliner
Plate No. UFC 963, Engine No. 4D56A-D5940
Chassis No. K14TJUNSL-010751
Acquisition Date: AD = December 16, 1995
Acquisition Cost: AC = P495,000.00
Date of Appraisal: June 26, 2000
Solution:
AV = CMV x

CF1
CF2

14

CMV = P209,000.00
Advertised Prices (similar brand and year model from Used
Car Dealers):
a) P209,000.00
b) P260,000.00
c) P285,000.00
CF1 = Condition Factor of subject property
CF2 = Condition Factor of comparable property

CF1 (see attached check list of subject property, Annex C1)

Component
Engine
Transmission
Differential
Body/Chassi
s
Others

% Weight
23
7
5
35
30

CF
0.80
0.90
0.90

=
=
=

0.1840
0.0630
0.0450

0.75
=
0.75
=
Total:

0.2625
0.2250
0.7795

CF2 (see attached check list of comparable property, Annex C2)

Component
Engine
Transmission
Differential
Body/Chassi
s
Others

% Weight
23
7
5
35
30

CF
0.60
0.85
0.85

=
=
=

0.1380
0.0595
0.0425

0.70
=
0.40
=
Total:

0.2450
0.1200
0.6050

Thus:
AV = (P209,000.00)

0.7795

= P269,282.00

0.6050
B. When Replacement Cost New (RCN) is available
1) When the Estimated Useful Life (EUL) of the property is

15

available
Given:

Same vehicle/property used in the above CMV

method

Solution: To determine RCN of the vehicle under appraisal:

The cost of brand new engines for the vehicle
available in the market is P100,000.00/unit.
Therefore:

Component

%
weight

Engine

23

Transmission

Differential

Body/Chassi
s

35

Others

30

0.23(P100,000.00)
0.23
0.07(P100,000.00)
0.23
0.05(P100,000.00)
0.23
0.35(P100,000.00)
0.23
0.30(P100,000.00)
0.23

100,000.00

30,435.00

21,739.00

152,174.00

130,435.00

say:
Add Cost of
Assembly,OCM:
RCN =

434,783.00
435,000.00
65,000.00
P 500,000.00

Note: If there are available price data in the market for the other
components, use the market data of said components rather
than the ratio and proportion applied above.
Component
Engine
Transmission
Differential
Body/Chassi
s

%
weight
23
7
5

ERUL
6
6
6

EUL
7
7
7

= 0.1971
= 0.0600
= 0.0430

35

= 0.2500
16

Others

30

= 0.2140
0.7641

AV = (P500,000.00) 0.7641
AV = P382,050.00

2) When the Estimated Useful Life (EUL) of the property is not

available
Given:
Method

Same vehicle/property used in the above CMV

Solution:
AV

RCN x

CF

17

where:
RCN

P500,000.00 (from B.1 above)

CF

0.7795 (from CMV Method above)

AV

P500,000.00 x 0.7795

AV

P389,750.00

C. When Acquisition Cost (AC) is available

For imported properties: Acquisition Cost Method
AV =

AC x CFF x CF

where:
CFF

= Currency Fluctuation Factor

= P/$ exchange rate on year of appraisal
P/$ exchange rate on year of acquisition
40
=

25.7144

= 1.56

CF

= 0.7795

AV

= (P495,000.00) (1.56) (0.7795)

AV

= P601,930.00

D. Other Cases:
1) When the property/subject vehicle is lost for which
accountability is being assessed

AV = CMV x

CF1
CF2

18

AV

= P209,000.00 x

0.6050
where : CF1 = 1 (condition factor when subject property is lost
under sec. 4.1.3)
AV = P345,455.00
2) When the component, such as engine unit, of the
above vehicle under appraisal is missing/salvaged:
0.7795 0.1840
AV = (P209,000.00)

0.6050
0.5955

AV = (P209,000.00)

0.6050

AV = P205,719.00
where:
0.1840 = over-all CF of the engine unit of the subject
vehicle
3) When the engine unit is beyond economic repair and
is considered junk/scrap:

AV = CMV x

CF1 0.1840
CF2

+ junk value of the

engine unit

where:
junk value =
engine unit

Estimated weight
of Engine

=
junk value =
engine unit

scrap/junk value
of metal as canvassed

500 kilos (P5.00)

P 2,500.00

19

where:
P5.00

= prevailing market value of metal

0.5955
AV = (P209,000.00)

=
AV =

0.6050

+ P2,500.00

P205,719.00 + P2,500.00
P208,219.00

20

TABLES

TABLE

1. COMPONENT RATING TABLES

(Source: NIA; Bureau of Equipment; USIPHIL; Monark; Maxima)

Type

A.

VEHICLES
Engine
Body and Chassis
Transmission
Differential
Others

23
35
7
5
30

B.

PASSENGER BUS
Body and Chassis
Engine
Transmission
Differential
Others

41
25
7
5
22

C.

HEAVY EQUIPMENT
Grader
Body and Chassis
Engine
Transmission
Others

35
25
20
20

Bulldozer
Body and Chassis
Engine
Differential
Transmission
Others

35
25
11
8
21

Dump Truck
Body and Chassis
Engine
Differential
Transmission
Others

6 Wheeler
35
25
11
8
21

10 Wheeler
25
19
14
9
33

22

Type

Concrete Mixer
Engine
Mixing Drum
Body/Chassis/spring/tires/etc.

45
35
20

Crane Crawler
Engine
Upper Machinery
Track group
Body/chassis
Others, boom bucket, acc.

25
30
25
10
10

Crane Truck Mounted

Engine (2)
Upper Machinery
Track group
Body/chassis
Others, boom bucket, acc.

35
25
20
10
10

Loader with Backhoe

Engine
Transmission
Body Chassis
Bucket, backhoe, tires & hydraulic

25
20
30
25

Loader
Engine
Transmission
Body Chassis
Bucket, tires, hydraulic
Excavators/Backhoe
Engine
Hydraulic System
(cyl., valves, hose, pipings)
Track group
Body, frame, arms & boom
others, bucket, etc.
Farm Tractor
Engine

Wheel
25
20
35
20

Crawler
30
25
15
30

25
25
25
25

30

23

Transmission
Body Chassis
Others, tires & attachment

25
20
25

24

Type

Truck Tractor
Engine
Transmission
Differential (tandem)
Body Chassis
Others, tires, spring, elect., etc.

30
10
10
25
25

Trailer for Jeep

Body, chassis
Wheel, tires, axle

80
20

Trailer for Truck Tractor 25 tons Capacity

Body Chassis
60
Wheel, tires, axle
40
Road Roller
Engine
Transmission
Drum
Body Chassis

1 Drum
50
20
15
15

Roller Vibratory
Engine
Transmission
Drum
Body Chassis

2 Drum

40
20
25
15

Pneumatic Roller
40
25
20 (Tire)
15

40
20
25 (including hydraulic system)
15

Tractor Crawler
Engine
30
Transmission Steering (Front Drive) 25
Track group
30
Body Chassis/dozer
15
Forklift
Engine
Transmission
Body/Chassis
Hydraulic, Tires &
Others
D.

35
10
25
30

AIRCONDITIONING UNIT (WINDOW)

25

Compressor
Condenser
Evaporator
Fan Motor
Filter/Drier
Others
Type

41
14
12
20
3
10
%

E.

TYPEWRITER (MANUAL)
Carriage Assembly
Type Basket Mechanism
Keyboards
Others

48
35
11
6

F.

DENTAL EQUIPMENT
Dental Unit & Chair
Air Scaler
Air Motor
Compressor HP
High Speed
Dental Stool

62
14
14
5
3
2

G.

MOTORCYCLE
Engine
Clutch, transmission,
sprocket & chain
Body/Chassis, shock
absorber & tank
Others, wheel tires,
electrical

H.

23
35
30
12

OTHERS
Concrete Vibrator
Engine
Vibrator
Pump

Engine
Pump

Generating Set
Engine

85
15

65
35

60
26

Generator
Welding Machine
Engine
Generator

40

60
40

27

Type

Air Compressor
Engine
Compressor
Body & Others

50
30
20

Chainsaw
Engine
Saw, etc.

80
20

Computers, tools and devices, furniture and fixtures are

appraised based on their scrap value, thus, component rating is not
applicable.

28

TABLE 2. TABLE OF ESTIMATED USEFUL LIFE OF PROPERTY,

PLANT AND EQUIPMENT per COA Circular No. 2003007 dated December 11,2003
TABLE OF ESTIMATED USEFUL LIFE
OF PROPERTY, PLANT AND EQUIPMENT

Property, Plant and Equipment

Land Improvements
Land Improvements
Runways/taxiways
Railways
Electrification, Power and Energy Structures
Buildings - those that are predominantly
Wood
Mixed
Concrete
Leasehold Improvements (Note I)
Land
Building
Wood
Mixed
Concrete
Office, Equipment, Furniture and Fixtures
Office Equipment
Furniture and Fixtures
IT Equipment-Hardware
Library Books
Machineries and Equipment
Machineries
Agricultural, Fishery and Forestry
Airport Equipment
Communication Equipment
Construction and Heavy Equipment
Firefighting Equipment and
Accessories
Hospital Equipment
Medical, Dental and Laboratory Equipment
Military and Police

Estimated
Useful
Life (in
years)
10
20
40
10
10
20
30
10
10
20
30
5
10
5
5
10
10
10
10
10
7
10
10
10

29

Equipment
Sports Equipment
Technical and Scientific Equipment
Other Machineries and Equipment
Transportation Equipment
Motor Vehicles
Trains
Aircraft and Aircraft Ground
Equipment
Watercrafts
Other Transportation Equipment
Other Property, Plant and
Equipment
Note
I-

10
10
10
7
10
10
10
10
5

The estimated useful life shall depend on the length of the lease.
It shall be the period of the lease or the estimated useful life of
the assets, as given, whichever is shorter.

30

TABLE 3.
YEAR
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003

TABLE OF PESO/DOLLAR EXCHANGE RATES

PESO/DOLLAR
3.8081
3.8997
3.8998
3.9009
3.8954
3.9152
3.9158
3.9191
3.0246
3.4317
3.6748
3.7562
3.7878
3.2478
3.4402
3.4432
3.3781
3.3776
3.5113
3.8995
3.5399
14.0010
18.0000
19.0000
20.4360
20.6000
21.0947
22.3351
28.0000
27.89, 27.4786
25.3451
27.0940
26.9514
25.7144
26.2157
34.2410
34.8081
40.8931
39.0890
44.1938
50.9927
51.6040

31

ANNEXES

ANNEX A

33

INVENTORY AND INSPECTION REPORT OF UNSERVICEABLE PROPERTY

(IIRUP)

INSTRUCTIONS
A. This report shall be accomplished as follows:
As of - period covered by the report
Letter Head and logo of the agency
Fund - fund name/code
INVENTORY:
a. Date Acquired - date of acquisition
b. Particulars - a brief description of the Property, Plant and Equipment
(PPE)
c. Property No. - assigned property number by the Property Custodian
d. Quantity - quantity of PPE
e. Unit Cost - unit cost of the PPE
f. Total Cost - quantity multiplied by the unit cost of the PPE
g. Accumulated Depreciation - total amount of depreciation charged to the
PPE
h. Net Book Value - the difference between the total cost of the PPE less
the accumulated depreciation
i. Remarks - brief information on the condition of the property
j. Certified Correct by/Date - name and signature of the Property Officer/
Custodian who prepared the report/date of the report
k. Verified by/Date - name and signature of the Head of the Accounting Unit
who verified the propriety of the Unit Cost, Total Cost, Accumulated
depreciation and Net Book Value/date when verified
5. INSPECTION:
a. Appraised Value - appraised value of the PPE
b. Disposition - different modes of disposing the PPE such as sale, donation
destruction, etc.
c. Remarks - additional information on the condition of the property
inspected
d. Inspected by/Date - name and signature of the inspector and the date of
inspection
e. Witnessed by/Date - name and signature of the witness/date when
witnessed

B.

1.
2.
3.
4.

C.
D.

E.

F.

The "INVENTORY" portion shall be accomplished by the Property

Unit. While the "INSPECTION" portion shall be accomplished by a
Technical Inspector where technical knowledge is needed for the
determination of the true condition or appraised value of the property
and to be witnessed by member of a committee created for that
purpose.
The assets shall remain in the books until these are sold/disposed.
When the property is sold, this report, together with the sales report
and other supporting documents shall serve as basis in preparing the
JEV to drop the assets from the books.
All Property Acknowledgement Receipt (PAR) covering the PPE
shall be cancelled so that the end user shall be relieved from his/her
accountability over the property.
The report shall be prepared in two (2) copies by the Property
Officer/Custodian and serves as a basis for preparing a JEV to adjust
the accounts affected. This shall be distributed as follows:
Original - Accounting Unit
2nd copy - Property Officer's/Custodian's file

page 2/2

34

ANNEX B

WASTE MATERIALS REPORT

_______________________________________
Agency
Place of Storage:

Date:

ITEMS FOR DISPOSAL

ITEMS
FOR
DISPOSAL

QTY.

UNIT

DESCRIPTION

RECORD OF SALES
O.R. No.

Amount

1
2
3
4
5
6
7
8
9
10
TOTAL
Certified Correct:
Disposal Approved:
_________________________________
____________________________________
Property Officer
CERTIFICATE OF INSPECTION
I hereby certify that the property enumerated above was disposed of as follows:
Item
Item
Item
Item

Destroye
d
Sold at private sale
Sold at public auction
Transferred without cost to _________

Property Inspector: (Name and Signature)

Witness to disposition:

35

ANNEX C
CHECKLIST FOR UNSERVICEABLE EQUIPMENT:
VEHICLES/HEAVY EQUIPMENT
Equipment Description/Type____________________Prop.No.__________
Unit Serial No._________________________Engine Serial No. __________
Acquisition Cost_____________________________Date__________________
Date Reported as Unserviceable ____________________________________
LEGEND:
S = Serviceable
M = Missing
ENGINE:
Operating Condition
Injection Pump Assembly
Injection/Nozzle Assy.
Fuel Pump Assembly
Cylinder Head Assembly
Water Pump Assembly
Radiator Assembly
Air Cleaner Assembly
Carburetor Assembly
Governor Assembly
Turbo Charger
Oil Cooler Assembly
No. of Cylinders
ELECTRICAL
Generator/Alterator
Assembly
Starter Assembly
Voltage Regulator Assy.
Solenoid Assembly
Ignition Coil Assy.
Magneto
Distributor Assembly
2/cap , rotor
Wiper Assembly
Headlight Assembly
Stop & Tail Light Assy.
Directional Light Assy.
(front & rear)
Battery

X = Unserviceable
NA = Not Applicable
SUSPENSIONS:
FrontSpringAssembly
RearSpringAssembly
WHEELS:
Tires Front
Tires Rear
Spare Tire
PROPELLER SHAFT ASSY.:
Front
Rear
DIFFERENTIAL ASSY.:
Front
Rear
FINAL DRIVE
Sprocket Assembly
Drive Chain
UNDERCARRIAGES:
Track Link Assembly
Idler Assembly
Track Adjuster Assy.
Track Roller Assy.
Carrier Roller Assy.
36

CLUTCH ASSEMBLY
TORQUE CONVERTER
CUSHIONS:
BODY/CAB/FENDERS
Front Seat
CHASSIS/FRAME
Rear Seat
WINDSHIELD
Operators Seat
FUEL TANK ASSEMBLY
GAUGES:
HYDRAULIC SYSTEM:
Hour/Service Meter
Hydraulic Pump Assembly
Speedometer
Hydraulic Motor Assembly
Tachometer
Hydraulic Hoses
Temperature Gauges
Control Valve Assembly
(water)
Hydraulic Cylinders
Oil Pressure Gauges
Converter oil Temperature
TRANSMISSION ASSEMBLY
Gauges
TRANSFERCASE ASSEMBLY
BRAKE SYSTEM:
WINDSHIELD
Master Cylinder Assembly
FUEL TANK ASSEMBLY
STEERING SYSTEM:
Power Steering System
Steering Clutch Assembly with Disc Plate & Brake Lining
ACCESSORIES:
Dozer/Blade Assembly
Riper Assembly
Cutting Edges
End Bits
Dragline Bucket
Clamshell Bucket
Backhoe Bucket
Ditching Bucket
Fairlead assembly
Tagline Assembly
(for crane)
(for crane)
Compressor
Cables
Boom Assembly
Boom Pulley
Lifting Block
Others
REMARKS:
Inspected by:
(NAME)

(DESIGNATION)

37

ANNEX C1
CHECKLIST FOR UNSERVICEABLE EQUIPMENT:
VEHICLES/HEAVY EQUIPMENT
Equipment Description/Type Mitsubishi L-200 Prop.No. Plate No. UFC - 963
Unit Serial No.
K14TJUNSL-010751
Engine Serial No. 4D56-D5940
Acquisition Cost
P 495,000.00
Date
December 16, 1995
Date Reported as Unserviceable _____________________________________
LEGEND:
S=
M=

Serviceable
Missing

X =
NA =

ENGINE:
Operating Condition
Injection Pump
Assembly
Injection/Nozzle Assy.
Fuel Pump Assembly
Cylinder Head Assembly
Water Pump Assembly
Radiator Assembly
Air Cleaner Assembly
Carburetor Assembly
Governor Assembly
Turbo Charger
Oil Cooler Assembly
No. of Cylinders
ELECTRICAL
Generator/Alterator
Assembly
Starter Assembly
Voltage Regulator Assy.
Solenoid Assembly
Ignition Coil Assy.
Magneto
Distributor Assembly
2/cap , rotor
Wiper Assembly

Unserviceable
Not Applicable

SUSPENSIONS:
S

FrontSpringAssembly

RearSpringAssembly

S
S

WHEELS:

S
S
S
S

Tires Front
Tires Rear
Spare Tire

S
S
S

NA
NA

PROPELLER SHAFT ASSY.:

NA
4

Front
Rear

NA
S

DIFFERENTIAL ASSY.:
Front
Rear

NA
S

NA

S
S

FINAL DRIVE

NA
NA

Sprocket Assembly
Drive Chain

NA

UNDERCARRIAGES:

NA

NA
NA

38

Headlight Assembly
Stop & Tail Light Assy.
Directional Light Assy.
(front & rear)
Battery
CLUTCH ASSEMBLY
CUSHIONS:
Front Seat
Rear Seat
Operators Seat
GAUGES:
Hour/Service Meter
Speedometer
Tachometer
Temperature Gauges
(water)
Oil Pressure Gauges
Converter oil Temperature
Gauges

BRAKE SYSTEM:
Master Cylinder
Assembly

S
S
S
S

Track Link Assembly

Idler Assembly
Track Adjuster Assy.
Track Roller Assy.
Carrier Roller Assy.
TORQUE CONVERTER
BODY/CAB/FENDERS

NA
NA
NA
NA
NA
NA
S

WINDSHIELD (Front)
FUEL TANK ASSEMBLY
HYDRAULIC SYSTEM:
Hydraulic Pump Assembly
Hydraulic Motor Assembly
Hydraulic Hoses
Control Valve Assembly
Hydraulic Cylinders

S
NA

S
S
S
NA
S
NA
S

NA
NA
NA
NA
NA

TRANSMISSION ASSEMBLY S
NA

TRANSFERCASE ASSEMBLY
NA
WINDSHIELD (rear)

FUEL TANK ASSEMBLY

STEERING SYSTEM:
Power Steering System
S
Steering Clutch Assembly with Disc Plate & Brake Lining
ACCESSORIES:
Dozer/Blade Assembly
Cutting Edges
Dragline Bucket
Backhoe Bucket
Fairlead assembly
(for crane)
Compressor
Boom Assembly
Lifting Block

NA
NA
NA
NA
NA
NA
NA
NA

Riper Assembly
End Bits
Clamshell Bucket
Ditching Bucket
Tagline Assembly
(for crane)
Cables
Boom Pulley
Others

NA
NA

NA
NA
NA
NA
NA
NA

39

REMARKS:
Fuel Injection Assy - for minor overhaul
Left Rear Side & Rear Bumper - with dents and scratches
Body of unit needs paint wash-over
Odometer Reading = 69,000 kms

Inspected by:
JUAN DELA CRUZ

(NAME)
Sr. TAS

(DESIGNATION)

40

ANNEX C2
CHECKLIST FOR UNSERVICEABLE EQUIPMENT:
VEHICLES/HEAVY EQUIPMENT
Equipment Description/Type L-200 1995 Model Prop.No. Plate No. UDR - 680
Unit Serial No. K14TYPSDE-839716 Engine Serial No.4D56-D6785
Acquisition Cost
P 495,000.00
Date
October 19, 1995
Date Reported as Unserviceable __Comparable Property_____
LEGEND:
S=
M=

Serviceable
Missing

X =
NA =

ENGINE:
Operating Condition
Injection Pump
Assembly
Injection/Nozzle Assy.
Fuel Pump Assembly
Cylinder Head Assembly
Water Pump Assembly
Radiator Assembly
Air Cleaner Assembly
Carburetor Assembly
Governor Assembly
Turbo Charger
Oil Cooler Assembly
No. of Cylinders
ELECTRICAL
Generator/Alterator
Assembly
Starter Assembly
Voltage Regulator Assy.
Solenoid Assembly
Ignition Coil Assy.
Magneto
Distributor Assembly
2/cap , rotor
Wiper Assembly

Unserviceable
Not Applicable

SUSPENSIONS:
S

FrontSpringAssembly

RearSpringAssembly

S
S

WHEELS:

S
S
S
S

Tires Front
Tires Rear
Spare Tire

S
S
S

NA
NA

PROPELLER SHAFT ASSY.:

NA
4

Front
Rear

NA
S

DIFFERENTIAL ASSY.:
Front
Rear

NA
S

NA

S
S

FINAL DRIVE

NA
NA

Sprocket Assembly
Drive Chain

NA

UNDERCARRIAGES:

NA

NA
NA

41

Headlight Assembly
Stop & Tail Light Assy.
Directional Light Assy.
(front & rear)
Battery
CLUTCH ASSEMBLY
CUSHIONS:
Front Seat
Rear Seat
Operators Seat
GAUGES:
Hour/Service Meter
Speedometer
Tachometer
Temperature Gauges
(water)
Oil Pressure Gauges
Converter oil Temperature
Gauges

BRAKE SYSTEM:
Master Cylinder
Assembly

S
S
S
S

Track Link Assembly

Idler Assembly
Track Adjuster Assy.
Track Roller Assy.
Carrier Roller Assy.
TORQUE CONVERTER
BODY/CAB/FENDERS

NA
NA
NA
NA
NA
NA
S

WINDSHIELD (Front)
FUEL TANK ASSEMBLY
HYDRAULIC SYSTEM:
Hydraulic Pump Assembly
Hydraulic Motor Assembly
Hydraulic Hoses
Control Valve Assembly
Hydraulic Cylinders

S
NA

S
S
S
NA
S
NA
S

NA
NA
NA
NA
NA

TRANSMISSION ASSEMBLY
S
NA

TRANSFERCASE ASSEMBLY
S
WINDSHIELD (rear)

FUEL TANK ASSEMBLY

STEERING SYSTEM:
Power Steering System
S
Steering Clutch Assembly with Disc Plate & Brake Lining
ACCESSORIES:
Dozer/Blade Assembly
Cutting Edges
Dragline Bucket
Backhoe Bucket
Fairlead assembly
(for crane)
Compressor
Boom Assembly
Lifting Block

NA
NA
NA
NA
NA
NA
NA
NA

Riper Assembly
End Bits
Clamshell Bucket
Ditching Bucket
Tagline Assembly
(for crane)
Cables
Boom Pulley
Others

NA
NA

NA
NA
NA
NA
NA
NA

42

REMARKS:
Engine needs top-overhauling
Signal lights and Headlight Assy. - not original/Taiwan
Needs underchassis repair - brake system & Suspension Assy.
Odometer Reading = 97,500 kms.

Inspected by:
JUAN DELA CRUZ

(NAME)
Sr. TAS

(DESIGNATION)

43

ANNEX D
CHECKLIST OF PROPERTIES FOR DISPOSAL
AIRCON/REFRIGERATOR/FREEZER
Equipment Description/Type____________________________________
Unit Serial No.________________________Prop.No._________________
Acquisition Cost_______________________Date____________________
Date Reported as Unserviceable ________________________________
LEGEND:
S =
M=

Serviceable
Missing

ELECTRICAL:
Motor Compressor
Running Capacitor
Starting Capacitor
Selector Switch
Magnetic Contactor
Relay
Overload Protector
Condensed Fan Motor
Fan Motor
Time Relay Switch
Wiring
Solenoid

X =
NA =

Unserviceable
Not Applicable

MECHANICAL:
Compressor
Thermostat
Condenser
Evaporator
Filter Drier
Capillary Tube
H/L Pressure Switch
Expansion Valve
Strainer
Surge Tank
Heat Exchanger
Sight Glass

OTHERS:
Body
Casing
Front Cover
Air Filter Element
Inspected by:
______________________________
(NAME)
______________________________
(DESIGNATION)

44

ANNEX E
Republic of the Philippines
XYZ Corporation
DISPOSAL COMMITTEE
Manila
APPRAISAL REPORT
Date:_____________
Subject:

Appraisal of various properties intended for disposal as listed

under attached _______ page/s Inventory and Inspection Report
of Unserviceable Property (I & I Report) dated
______________.

Findings/Observations:
1.

The subject properties were all kept inside a guarded bodega

and systematically arranged in accordance with the listings
indicated under I & I Report.

2.
3.
Note: With individual Checklist and pictures hereto attached.
Valuation Procedures/Consideration:
1.

The condition of the above-subject properties has been

assessed thru ocular inspection.

2.

The vehicle was appraised on the basis of the available Current

Market Value (CMV) taken from advertised price of used vehicle
of the same make and model from ABC magazine, May 2,
2000 issue.

3.
4.
5.

Determination of the appraised value is based on the COA

Revised Guidelines on Appraisal of Property other than Real
Estate, Antique Property and Works of Art.

45

6.

The total appraised value of the above subject properties arrived

at is P_____________, broken down as follows:
Item Description
a.
b.
c.

Appraised Value
______________
______________
______________

Total Appraised Value

P ____________

Prepared by:
JUAN DELA CRUZ
Member
Disposal Committee

46

ANNEX F

ADJUSTMENT OF APPRAISED VALUE WHEN AUCTION BIDS

ARE LOW

In Sec. VII of COA Memorandum No. 88-569, the

hereunder activities were performed by the Auditor. However,
with the lifting of pre-audit, these functions became the
responsibility of the Agency.
If after exposure of the property to public auction, as
required under Sec. 79 of P.D. 1445, the highest bid falls below
the government floor price the agency shall:
1. Determine whether the difference is excessive. The
amount of deviation of the highest bid from
the floor /reference value is considered excessive
when it
is
greater
than
10%
of
the
floor/reference value plus the cost of calling
another public auction.
2. If the difference is found not excessive, the agency
shall continue with the sale of the unserviceable
properties.
If the difference is found to be
excessive, the agency shall call for another public
auction with the floor/reference value reduced by
10%.
If the second auction still fails, i.e., the highest bid is still
excessively lower than the reduced floor/reference value, then
the sale may be negotiated with the highest offeror.

47