I am trying to evaluate the estimated useful lives assigned to fixed assets at my bank. I know what we have all traditionally assigned to the different classes of fixed assets, but I can't find this in any rules, standards, etc. I am basically just comparing what we use to other banks. Is this the best way? Or, does someone have a suggestion of where this type of information is listed from a reliable source that can be used for my work. Otherwise, I will just have to do my comparisons. Any guidance would be great!

Thanks!

I think fixed lives for different assests are pretty standard regarding similar assets. ie - a computer has a useful life of x number of years in most banks. Although, I'm not sure where that guidance comes from.

Looking at other banks is definitely a good start. The IRS might be another. Your externals might be a good source as well (they help me out, as well as review useful life during their external audit.)

Thanks! I appreciate your input!

GAAP does not have a rule or standard that requires various capital assets to be depreciated over a "pre-defined" useful life. Rather, the estimated useful life is supposed to approximate the remaining life of the capital asset.

Most banks I observed have a fixed asset policy that establishes ranges for estimated useful lives (i.e. computer hardware 3-5 years, furniture 5-10 years, etc.).

As suggested by AuditGuy, check out the IRS website and check with your external auditors for guidance. Click on the IRS links below and then click on the Table B links to see useful life ranges.

http://www.irs.gov/publications/p946/ch04.html
http://www.irs.gov/publications/p946/ar02.html#d0e10880

We have incorporated the useful lifesof fixed assets in our Fixed Asset policy.