ASTM E2131-16 PDF Download

The ASTM E2131-16 standard provides guidelines for addressing and reporting losses of tangible property within an organization. Losses of property can indicate operational inefficiencies, policy or procedural weaknesses, or lack of compliance, which can have a negative impact on the organization's profitability, performance, and reputation. This standard emphasizes the importance of addressing and reporting losses as indicators for potential action by decision makers.

The standard highlights that the term "equipment" is used consistently throughout this practice, but the process can be applied to other classes of property, such as raw materials in inventory. It clarifies that the practice does not change any requirements imposed through law, regulations, contract terms, and conditions.

Additionally, the standard focuses on the importance of managing risks associated with loss occurrences. It emphasizes the need to project, discover, disclose, report, manage, and minimize losses to a reasonable extent. It also establishes acceptable levels of losses. The standard acknowledges that losses can be discovered through various means, such as physical inventory, self-assessment, or external audit. However, it does not address the assessment of financial liability for losses, as this is generally subject to individual contracts or arrangements.