Author: United States. General Accounting Office

Publisher:

Published: 1997

Total Pages: 20

ISBN-13:

The Defense Department (DOD) has yet to implement the federal accounting standard that requires recognizing and reporting liabilities, such as those associated with ammunition disposal, nor has it provided the military services with guidance. DOD agrees with GAO's recommendation to incorporate Statements of Federal Financial Accounting Standards No. 5 in its Financial Management Regulation. Ammunition disposal is an ongoing process that results from materials with a limited shelf-life or that otherwise will not be used in operations, and the cost can be reasonably estimated. Accordingly, these activities meet the criteria for a reportable liability. The cost information that DOD developed in response to requests from Congress can be used as a starting point to estimate the ammunition disposal liability. Several additional factors will have to be addressed, including the reliability of data, the completeness of data, and the need for periodic updates.