Accounting for personal property

My HOA in Flordia does not record any personal property on the balance sheet. I have looked at the AICPA guidelines, which states that personal common property should be recorded on the balance sheet. When I question the current accounting policy, I am told that these are items are expensed since they are replacement items for property acquired during the turnover with the developer. I have tried to find out authoritative litature to support their recording of these items, but I cannot find anything to support this.

I believe these items need to be recorded on the balance sheet no matter what.

Does anyone have any comment

common personal property (not real estate) includes pool chairs, office equipment, desk, chairs etc. I

Christy, I would not include expensed items on the Balance Sheet; and I would expense these items if not all ready done so by the Developer.

Thank you for your response. However, according to GAAP and the AICPA's guide for RICA's these items should be capitalized. Where is the guidance that states these may be expensed; I can't seem to find it anywhere. I just want to make sure we are doing it correctly; could let me know where to find this guidance?

Christy, small capitalized items are usually expensed. My guideline is: "What is the resale value?" If it is insignificant it is expensed; and the items you listed have insignificant resale value.

I understand materiality. I am asking this question for items that would be material to the HOA. Really, the only thing I asking for is authoritative guidance, that supports recording these material items as an expense. According to AICPA guide for CIRAs (2.11) "CIRAs should recognize common personal property, such as furnishings, recreational equipment, maintenance equipment, and work vehicles, that is used by the CIRA in operating, preserving, maintain, repairing, and replacing common property and providing other services as assets." Therefore, because I have found guidance that tells me to capitalize it, I am confused as to why these items are being expensed. I was wondering if there were some technical bulletins that would say to record it another way.

Thank you for your kind response.

Christy,

All I want to make clear is that GAAP comes from the AICPA which is not a gov't agency. The IRS is a Fed Gov agency and what they say rules. In Sec 179 they give the option to either expense out the purchase of an asset or to capitalize it -- either way is acceptable. It appears to me your HOA has preferred to expense it so they have done nothing wrong.