Effective January 22, 2015,, the Postal Service™ is revising the following sections of Handbook F-23, Accounting Policy Reference, to reflect current policy.
* * * * *
Handbook F-23, Accounting Policy Reference
* * * * *
2 General Policies
* * * * *
2-2 New Accounting Pronouncements
[Revise item c to read as follows:]
c. Briefing the Audit and Finance Committee of the BOG on any developments that might have an effect on future financial statements.
* * * * *
2-8.1 Closing Checklists
[Revise 2-8.1 to read as follows:]
To ensure that all accounting systems have reported before books are closed, Corporate Accounting monitors the closing checklists that the Accounting Service Centers (ASCs) submit to HQ Accounting.
* * * * *
3-2 Receivable and Allowance for Losses
[Revise the fourth paragraph of 3-2 to read as follows:]
Receivables also arise as the Postal Service provides postal products to various businesses acting as our agent to distribute stamps or other products for sale. Other miscellaneous receivables arise from nonsufficient fund (NSF) checks or claims for loss as well as other reasons (e.g., employee travel advances, banking adjustments due from the Federal Reserve).
* * * * *
3-7.2.1.1 Acquisitions
[Revise 3-7.2.1.1 to read as follows:]
Building costs include the original acquisition and improvement costs of a building or structure, including permanent fixtures.
The Postal Service capitalizes the costs of all acquisitions of buildings. The Postal Service records building costs in a buildings account after the earliest of the following occurs:
a. The building is beneficially occupied for Postal Service purposes.
b. The technical work is completed and the Postal Service accepts the total facility for occupancy or use.
c. The Facilities Department approves the administrative and fiscal closeout of a capital project.
Capital leases are reported under the real property account.
* * * * *
3-7.2.1.3 Depreciation
[Revise the sixth sentence of 3-7.2.1.3 to read as follows:]
***Improvements, except major capital projects, made to a fully depreciated facility are depreciated over the next 12 months following the month of capitalization.***
* * * * *
3-7.2.2.1 Acquisition
[Revise the third paragraph of 3-7.2.2.1 to read as follows:]
The Postal Service may capitalize together or separately bulk purchases of like items based on an Accounting review.
* * * * *
3-7.2.4.1 Acquisitions
[Revise section to read as follows:]
The Postal Service capitalizes leasehold improvements if the cost is $10,000 or more.
* * * * *
3-7.2.4.2 Amortization
[Add second sentence to intro paragraph of 3-7.2.4.2 to read as follows:]
***Fully depreciated LHIs remain on the books until the USPS exits the leased property at which time they are removed from the accounting records.
* * * * *
4 Liabilities
[Revise 4 to read as follows:]
The Postal Service classifies liabilities as either current or as long-term. Current liabilities include liabilities that are due and payable within approximately one year or a longer cycle, in the case of certain foreign payables. Long-term liabilities are liabilities that are due and payable beyond approximately 1 year.
* * * * *
4-1 Current Liabilities
[Revise item f to read as follows:]
f. Other. Includes prepaid box rentals, permit and metered mail, outstanding postal money orders, and the current portion of capital lease obligations and long-term debt.
* * * * *
7-3 Offset of Emergency Preparedness Expense
[Revise 7-3 by deleting the second paragraph in its entirety:]
* * * * *
We will incorporate these revisions into the next online update of Handbook F-23, Accounting Policy Reference, which is available on the Postal Service PolicyNet website:
n Go to http://blue.usps.gov.
n In the left-hand column under “Essential Links”, click PolicyNet.
n Click HBKs.
The direct URL for the Postal Service PolicyNet website is http://blue.usps.gov/cpim.
— Revenue and Field Accounting,
Controller, 1-22-15
