GASB No. 42, Capital Asset Impairment (Revisited)
School Advisor, 2006 Issue No. 1

Does your district have a building that has permanently been taken “out of service”? Or does your district have a capital asset that has been damaged beyond repair? Under GASB No. 42, these situations will require the capital asset (i.e., land, building, etc.) to be written down to its fair market value if it is below net book value. So be prepared to answer the impairment question during this year’s audit and be able to document the fair market value of any capital assets that actually are impaired.