General Instruction Manual: Accounting Policy, Methods & Systems Department

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION NO.
GENERAL INSTRUCTION MANUAL 202.330

ISSUE DATE REPLACES
ISSUING ORG. ACCOUNTING POLICY, METHODS & SYSTEMS DEPARTMENT 10-25-00 07-22-97
APPROVAL PAGE NO.
SUBJECT CAPITAL ASSETS - SERVICE LIVES AND DEPRECIATION IAM 1 OF 4
CONTENT:
This instruction discusses the calculations to depreciate Saudi Aramco fixed assets. The attached supplements contain tables
of normal service lives for all capital assets except for drilling capital assets which are covered in GI 202.331. These tables are
used by Finance for computing monthly depreciation charges to apportion the book cost of capital assets over estimated useful
lives. The text includes:
1. Glossary
2. Definitions
3. Changes of Service Lives
4. Depreciation Calculation
1. GLOSSARY:
1.1 ABBREVIATIONS
DZIT Department of Zakah and Income Tax

EC Entry Code
FAAS Fixed Assets Accounting System
FAAU Fixed Assets Accounting Unit
FAWIP Fixed Assets & Work-in-Progress Accounting Department
GI General Instruction
GLS General Ledger System
NGL Natural Gas Liquefied
VO Voucher
VPS Voucher Processing System
1.2 ENTRY CODE
E/C 896 Depreciation Expense
1.3 VOUCHER
VO 7 Fixed Assets Activity
1.4 GENERAL INSTRUCTION
GI 202.331 Drilling Equipment - Servic e Lives and Depreciation
1.5 SUPPLEMENTS
* Supplement 5- Capital Assets - Table of Service Lives ( Assets Capitalized after November 1, 2000)
Supplement 10 - Capital Assets - Table of Service Lives (Crude Oil Assets)
Supplement 15 - Capital Assets - Table of Service Lives (Master Gas System Assets)
Supplement 20 - Capital Assets - Motor/Marine/Aircraft/Const. Equipment Table of
Service Lives
* CHANGE ** ADDITION NEW INSTRUCTION COMPLETE REVISION


ISSUE DATE REPLACES
APPROVAL PAGE NO.
2. DEFINITIONS:
2.1 DEPRECIABLE CAPITAL ASSET
Depreciable capital assets are any capitalized plant and equipment assets.
2.2 DEPRECIATION
Depreciation is the expensing of the cost of a capital asset, less any salvage value, over its expected useful
life.
2.3 SERVICE LIFE
Service life is the expected useful life of a capital asset. The service lives in this instruction were established
by the Company's engineering and operating personnel based on normal retirement resulting from ordinarily
expected causes such as exhaustion, wear and tear, or normal obsolescence. They do not contain any
provision for abnormal retirement resulting from external causes such as radical economic changes,
legislation, casualties, or other unpredictable factors which may force the retirement or disposition of a capital
asset sooner than expected.
3. CHANGES OF SERVICE LIVES :
3.1 In February 1973, DZIT issued draft schedules of fixed asset depreciation rates to be complied with
commencing from the fiscal year 1972.
3.2 Because these schedules referred to capital assets of a general commercial nature rather than the specialized
capital assets in the oil industry, Saudi Aramco pursued the matter further regarding Saudi Aramco
compliance with these schedules. The Ministry of Petroleum letter HH/93/137 dated 18 June, 1973 advised
that the depreciation rates listed in the schedule (DZIT Circular 12025/2/1) did not apply to the “specialized
capital assets in the oil industry” and that DZIT “is now preparing schedules for these capital assets”.
3.3 As of this instruction date, no schedules for oil industry capital assets have been issued by DZIT, and the
current position (as advised by the Saudi Aramco Law Department) is that:
(a) Saudi Aramco may continue using the existing Saudi Aramco determined capital asset type service
lives but cannot change them without specific prior approval from DZIT, and
(b) For new capital asset types Saudi Aramco may determine and apply its own estimated service life.
3.4 The only time a capital asset service life should be amended is when the asset is transferred to another
function having a different service life established for that same type of asset. When it is necessary to
establish a service life for a new capital asset type, FAWIP will work with the proponent to establish that
service life.
* 3.5 Effective with this instruction, the table of useful lives (Supplements 10 and 15) have been changed to assign
a uniform useful life across asset accounts. The new useful lives are contained in Supplement 5 and will be
effective for new assets capitalized after November 1, 2000. This change was made after consultation with the
Saudi Aramco Law Department. Supplements 10 and 15 are still active for assets capitalized before
November 1, 2000.


ISSUE DATE REPLACES
APPROVAL PAGE NO.
4. DEPRECIATION CALCULATION:
4.1 FAAS calculates depreciation monthly, and charges are passed to the respective general ledger depreciation
accounts through VO 7 of VPS. Additionally FAAU of FAWIP reallocates/transfers depreciation charges
accumulated under special holding accounts to certain operating expense accounts using E/C 896. Examples
of such operating expense accounts are Motor Equipment 723-600, Marine Equipment 720-130, Aircraft 727-
201, and Construction Equipment 797-474.
4.2 Two approved methods may be used for calculating monthly depreciation charges. Both are based on the
straight-line concept that assumes that depreciation is a uniform function of time. These are:
4.2.1 LIFE TO DATE.
The amount of the monthly depreciation charge is system calculated using the following formula:
a = (b - c) x d - f
e
Where: a = Depreciation for current month
b = Book cost
c = Salvage value
d = Number of months from the beginning depreciation date to the end of the
current month
e = Service life in months
f = Accumulated depreciation to the end of the previous month.
This Life to Date method is used when new assets are capitalized. It is referred to as method 01 in
the FAAS.
4.2.2 REMAINING VALUE/REMAINING LIFE.
The amount of the monthly depreciation charge is calculated using the following formula:
a = (b - c - g) x i - j
h
Where: a = Depreciation for current month
b = Book cost
c = Salvage value
g = Accumulated depreciation to the end of the previous year calculated as full

accumulated depreciation minus the calculated current year depreciation (“j”
below).


ISSUE DATE REPLACES
APPROVAL PAGE NO.
h = Number of months from the later of the beginning depreciation date or

January of current year to the end of the capital asset life.
i = Number of months from and including January of the current year or the
beginning depreciation date, whichever is later, to and including the current
month.
j = Calculated amount of depreciation taken in the current year to the end of the
previous month. Sometimes referred to as “PROP YTD DEP” meaning
proportionate year to date depreciation.
This method will be used when service lives are changed following a capital asset transfer. The
calculation method is referred to as method 0C.
4.2.3 When it is necessary to correct the service life of capital assets for an error in classification,
previously taken depreciation should be reversed and the recalculated amount should be
recorded. In these instances method '01' should be used. However, depending upon the nature of
the adjustments, FAWIP may use either method (01 or 0C).
4.2.4 When the present FAAS was installed existing records were converted using method 0C.
4.3 Transac tions relating to capital assets including additions, book cost adjustments, transfers, retirements, and
sales are recorded by FAWIP through FAAS. These transactions will cause FAAS to generate adjustments to
accumulated depreciation and depreciation expense. The system also calculates depreciation each month
afterward until the end of the asset’s useful life.
4.4 All adjustments and depreciation calculated by the system are passed monthly to the general ledger through
VO 7. Some manual adjustments may be required after VO 7 closing and they may be booked directly into
GLS. Generally manual adjustments that require a reversal are reversed out of the general ledger and
recorded into FAAS the following month.
Approved: _______________________
E.D. O’Brien, Manager (A)
Accounting Policy, Methods
& Systems Department
CNM
W/C #M672

GENERAL INSTRUCTION MANUAL 202.330-5

ISSUE DATE REPLACES
ISSUING ORG. ACCOUNTING POLICY, METHODS & SYSTEMS DEPARTMENT 10-25-00 New
APPROVAL PAGE NO.
CAPITAL ASSETS – TABLE OF SERVICE LIVES (Crude Oil and MGS Assets)
Applicable for assets capitalized after November 1, 2000
Item Rate Description Est. Life

0014 Roads, Walks, Pavements 20
0015 Fencing 15
0016 Bridges, Trestles, Culverts 20
0017 Retaining Walls, Fire Walls 20
0019 Railroad Track & Spurs 20
0020 Mechanical PABX Switch (50X) 6

0021 Electric Distribution Lines 20
0022 Communication Equipment 14
0023 Electric Light & Power Equipment 15
0024 Wellhead Equipment (516X) 15
0025 Buildings, Permanent (other than item rate code 72) 25

0026 Bins 20
0027 Racks, Platforms 20
0028 Wharves, Piers 23
0030 Atmospheric Separators, Settling Basins, Sumps 15
0031 Tanks 23
0033 Drums, Vessels, Misc Containers 20
0034 Iron Packages 15
0035 Agitators, Mixers 12
0036 Filter Presses, Filters 20
0037 Oil Sewers, Sanitary Sewers 14

0038 Fire Protection Pipelines 12
0039 Pipelines, Process Lines 23
0040 Utility Pipelines 15
0042 Pipeline Supports & Trenches 20
0043 Furnaces, Boilers, Heaters 17

0044 Fractionators, Process Towers 18
0045 Heat Exchangers, Condensers, Coils 12
0049 Flow Lines 20
0051 Electric Precipitators 15
0052 Dryers, Kilns, disposal Furnaces 20

0053 Water Wells (516X) 25
0054 Cooling Towers 15
0055 Compressors, Blowers, Exhaustors 10
0056 Engines, Turbines 14


ISSUE DATE REPLACES
ISSUING ORG. ACCOUNTING POLICY, METHODS & SYSTEMS DEPARTMENT 10-25-00 New
APPROVAL PAGE NO.
Item Rate Description Est. Life

0057 Pumps 14
0058 Electric Motors, Generators 20
0059 Plant Instruments, Control Equipment 12
0060 Pulverizing & Screening Equipment 10
0061 Gas & Electric Appliances 6
0062 Laboratory & Testing Equipment 10

0063 Stationary Hoists, Derricks, Cranes 10
0064 Well pipe (516X) 25
0065 Forges, Heat Treat Furnaces 15
0066 Weighing & Packaging Equipment 10
0067 Conveyors, Elevators 10

0068 General Equipment 10
0069 Sundry Small Tools 6
0070 Perishable Equipment 6
0071 Superstructures, Stairways, Elev. Walks 15
0072 Portable/Temporary Buildings (other than item rate code 25) 8

0073 Stratigraphic Drilling Equipment 6
0074 Portable Maintenance Equipment 5
0076 Recreational Facilities 15
0077 Furniture & Fixtures 8
0078 Drafting & Surveying Equipment 8

0079 Office Machines & Appliances 6
0080 Unclassified 15
0081 EDP Computer Equipment to 12/31/84 (91X) 7
0082 EDP Computer Equipment from 01/01/85 (91X) 5
0085 Cathodic Protection 12
(W/C #672) Approved: ________________________

CNM E.D. O’ Brien, Manager
Accounting Policy, Methods,

General Instruction No.

ISSUE DATE REPLACES
ISSUING ORG. ACCOUNTING POLICY, METHODS & SYSTEMS DEPARTMENT 07/22/1997 12/18/1995
SUBJECT CAPITAL ASSETS - TABLE OF SERVICE LIVES (Crude Oil Assets) APPROVAL PAGE NO.
AIA 1 of 3
SERVICE LIVES IN YEARS BY DEPRECIABLE GROUPS OF ASSETS
Crude Oil General *

Develop- Collection Pressure Tapline/ Service
Item ment Facilities Mainte- Pipelines Marine NGL/LPG Plant Local Drilling** Exploration
Rate DESCRIPTION Wells & Separators Stabilizers nance Plant Refinery Terminal Facilities 304-31 thru Sales Equipment Equipment
Codes 301-02 301-03 301-04 301-05 301-06/08/09 302-10 302-15 302-20 304-64 305-XX 306-81 306-82
14 Roads, Walks, Pavements 20 20 20 20 20 20 20 20 21 10 21

15 Fencing 15 15 15 15 15 15 15 15 15 15 15
16 Bridges, Trestles, Culverts 20 20 20 20 20 20 20
17 Retaining Walls, Fire Walls 20 20 20 20 20 20 20 20 12
19 Railroad Trackage & Spurs 25 15

20 Mechanical PABX Switch - 6 yrs 6
21 Electric Distribution Lines 20 20 20 20 20 20 20 18 20
22 Communication Equipment 14 14 14 14 14 14 14 14 6 14
23 Electric Light & Power Equipment 15 15 15 15 15 15 15 15 15 5 15
24 Wellhead Equipment 15 15
25 Buildings, Permanent (other than
item rate code 72) 25 25 25 25 25 25 25 25 20 25 25
26 Bins 20 20
27 Racks, Platforms 15 15 20 20 20 20 20 20 20 20 20
28 Wharves, Piers 15 20 23 23 20 20
30 Atmospheric Separators,
Settling Basins, Sumps 15 15 15 15 15 10 15 15 15 8
31 Tanks 20 20 20 25 22 20 23 23 20 20 3
33 Drums, Vessels, Misc Containers 20 20 20 20 20 20 20 20 20 20 20
34 Iron Packages 15 15 15
35 Agitators, Mixers 12 12 12 12 12 12 12 12
36 Filter Presses, Filters 20 20 20 20 20 20 20
37 Oil Sewers, Sanitary Sewers 20 14 14 14 14 14 14 14 14
* Excludes 304-61. See Supplement 202.330-20.

** Drilling Equipment (GI 202.331)

ISSUE DATE REPLACES
AIA 2 of 3
Crude Oil General *

Codes 301-02 301-03 301-04 301-05 301-06/08/09 302-10 302-15 302-20 304-64 305-XX 306-81 306-82
38 Fire Protection Pipelines 12 12 12 12 12 12 12 12 12

39 Pipelines, Process Lines 20 25 20 25 18 20 20 15 20
40 Utility Pipelines 15 15 15 15 17 17 15 15
42 Pipeline Supports & Trenches 20 25 20 25 20 20 20 20 20
43 Furnaces, Boilers, Heaters 12 17 17 17 17 17 17 20 17

44 Fractionators, Process Towers 25 25 18 18 18 18 25
45 Heat Exchangers, Condensers, Coils 12 15 12 12 11 12 12 12 12 12
49 Flow Lines 20 20 20
52 Dryers, kilns, disposal Furnaces 20 20 20 20 20
53 Water Wells 25 25 25 25 5
54 Cooling Towers 15 15 15 15 15 15 15 15
55 Compressors, Blowers, Exhaustors 10 10 10 19 10 10 10 10 15 10 10

56 Engines, Turbines 14 14 14 14 13 14 14 14 14 14 8
57 Pumps 14 14 14 14 23 15 14 14 14 14 14
58 Electric Motors, Generators 20 20 20 20 15 15 20 20 20 12 20
59 Plant Instruments, Control Equipment 13 13 10 10 15 12 10 10 10 10 4
61 Gas & Electric Appliances 6 6 6 6 6 6 6 5 6 6
62 Laboratory & Testing Equipment 10 10 10 10 10 10 10 10 10 8
63 Stationary Hoists, Derricks, Cranes 10 10 10 10 10 10 10 10 10 10 10

64 Well Pipe 25
65 Forges, Heat Treat Furnaces 15 15
66 Weighing & Packaging Equipment 10 10 10 10 10 10 10


ISSUE DATE REPLACES
AIA 3 of 3
Crude Oil General *

Codes 301-02 301-03 301-04 301-05 301-06/08/09 302-10 302-15 302-20 304-64 305-XX 306-81 306-82
67 Conveyors, Elevators 10 10 10 10 10 12
68 General Equipment 8 8 8 8 8 8 8 8 10 8 5
69 Sundry Small Tools 6 6 6 6 6 6 6 6
70 Perishable Equipment 6 6 6 6 6 6 6 6 6 6
71 Superstructures, Stairways, Elev. Walks 15 15 15 15 20 15 15 15 15

72 Portable/Temporary Buildings
(other than item rate code 25) 8 8 8 8 8 8 8 8 8
73 Stratigraphic Drilling Equipment 6 6 8
74 Portable Maintenance Equipment 5 5 5 10 5 5 5 4
76 Recreational Facilities 15 15 3
77 Furniture & Fixtures 8 8 8 8 8 8 8 8 8
78 Drafting & Surveying Equipment 8 8 8 8
79 Office Machines & Appliances 6 6 6
80 Unclassified 15 15 15 15 15 15 15 15 15 15 12 15
81 EDP Computer Equipment to 12/31/84 7 7 7 7 7 7 7 7
82 EDP Computer Equipment from 01/01/85 5 5 5 5 5 5 5 5 5 5
85 Cathodic Protection 12 12 12 10 10 12 12 12 10

Approved:
Y. M. OBAYID, Manager

ISSUE DATE REPLACES
SUBJECT CAPITAL ASSETS - TABLE OF SERVICE LIVES (Master Gas System Assets) APPROVAL PAGE NO.
AIA 1 of 3
Stabili- General
Wells Oil Gas zers Pressure Refinery Service Local
Item Gas and Collection (Gas Mainte- Pipelines (Gas Ethane Sulfur Marine NGL Plant Sales
Rate DESCRIPTION Injection Facilities Program) nance Plant Program) Facilities Facilities Terminal Facilities 324-31 Thru Plant
Codes 321-02 321-03 321-04 321-05 321-08 322-10 322-12 322-14 322-15 322-20 324-64 325-71
14 Roads, Walks, Pavements 20 20 20 20 20 20 20 20 21 10

15 Fencing 15 15 15 15 15 15 15 15 15 15 15
16 Bridges, Trestles, Culverts 20 20 20 20 20
17 Retaining Walls, Fire Walls 20 20 20 20 20 20 20 20 12
19 Railroad Trackage & Spurs 25 15

20 Mechanical PABX Switch - 6 yrs 6
21 Electric Distribution Lines 20 20 20 20 20 18 20
22 Communication Equipment 14 14 14 14 14 14 14 14 14 6
23 Electric Light & Power Equipment 15 15 15 15 15 15 15 15 15 15 15 15
24 Well Head Equipment 15 15

25 Buildings 25 25 25 25 25 25 25 25 20
26 Bins 20
27 Racks, Platforms 15 15 20 20 20 20 20 20 20 20
28 Wharves, Piers 15 20 23 23 20 20
30 Atmospheric Separators,
Settling Basins, Sumps 15 15 15 15 15 10 15 15 15 8
31 Tanks 20 20 25 22 23 20 23 23 20 20
33 Drums, Vessels, Misc Containers 20 20 20 20 20 20 20 20 20 20
34 Iron Packages 15 15
35 Agitators, Mixers 12 12 12 12 12 12 12
36 Filter Presses, Filters 20 20 20 20 20 20
37 Oil Sewers, Sanitary Sewers 20 14 14 14 14 14 14 14

ISSUE DATE REPLACES
AIA 2 of 3
Stabili- General
Codes 321-02 321-03 321-04 321-05 321-08 322-10 322-12 322-14 322-15 322-20 324-64 325-71
38 Fire Protection Pipelines 12 12 12 12 12 12 12

39 Pipelines, Process Lines 20 20 25 20 18 20 20 15 20
40 Utility Pipelines 15 15 15 17 15 15
42 Pipeline Supports & Trenches 20 20 25 20 20 20 20 20
43 Furnaces, Boilers, Heaters 12 17 17 17 17 17 17 20 17

44 Fractionators, Process Tower 25 25 18 18 18 18 25
45 Heat Exchangers, Condensers, Coils 12 12 12 12 11 12 12 12 12
49 Flow Lines 20 20
52 Dryers, kilns, disposal Furnaces 20 20 20 20
53 Water Wells 25 25 25 25 25 5
54 Cooling Towers 15 15 15 15 15 15 15
55 Compressors, Blowers, Exhaustors 10 10 19 10 10 10 10 10 15 10

56 Engines, Turbines 14 14 14 13 14 14 14 14 14
57 Pumps 14 14 14 23 14 15 14 14 14 14
58 Electric Motors, Generators 20 20 20 15 20 15 20 20 20 12
59 Plant Instruments, Control Equipment 13 13 10 10 15 12 10 12 10 10 10 10

61 Gas & Electric Appliances 6 6 6 6 6 6 6 5 6
62 Laboratory & Testing Equipment 10 10 10 10 10 10 10 10
63 Stationary Hoists, Derricks, Cranes 10 10 10 10 10 10 10 10 10

64 Well Pipe 25
65 Forges, Heat Treat Furnaces 15 15 15
66 Weighing & Packaging Equipment 10 10 10 10 10 10

ISSUE DATE REPLACES
AIA 3 of 3
Stabili- General
Codes 321-02 321-03 321-04 321-05 321-08 322-10 322-12 322-14 322-15 322-20 324-64 325-71
67 Conveyors, Elevators 10 10 10 10 10 12
68 General Equipment 8 8 8 8 8 8 8 8 10 8
69 Sundry Small Tools 6 6 6 6 6 6
70 Perishable Equipment 6 6 6 6 6 6 6 6
71 Superstructures, Stairways, Elev. Walks 15 15 15 15 20 15 15 15 15

72 Portable/Temporary Buildings 8 8 8 8 8 8 8 8 8
73 Stratigraphic Drilling Equipment 6 6
74 Portable Maintenance Equipment 5 5 5 10 5 5 5
76 Recreational Facilities 15 15 15
77 Furniture & Fixtures 8 8 8 8 8 8
78 Drafting & Surveying Equipment 8 8 8 8
79 Office Machines & Appliances 6 6 6 6
80 Unclassified 15 15 15 15 15 15 15 15 15 15
81 EDP Computer Equipment to 12/31/84 7 7 7 7 7 7 7 7 7 7
82 EDP Computer Equipment from 01/01/85 5 5 5 5 5 5 5 5
85 Cathodic Protection 12 12 12 10 10 12 12 12 10
Approved:
(W/C #M539)
AAN:sw

ISSUE DATE REPLACES
CAPITAL ASSETS - MOTOR/MARINE/AIRCRAFT/ CONSTRUCTION APPROVAL PAGE NO.

SUBJECT AIA
EQUIPMENT TABLE OF SERVICE LIVES 1 OF 3
GEN. LEDGER TYPE DESCRIPTION SERVIC SALVAG EFFECTIV ITEM

ACCT. E E E
LIFE VALUE
Motor Equipment 0X Trailers
309-90/328-90
Gen. Cargo Trailers, and Dollies 10 15% Jan. 1959 104
Tank and Dry Van Trailers 7 12% Jan. 1959 102
Refrigerated Van Trailers 5 10% Jan. 1959 101
1X Light Vehicles (10,000 GVW and below) 3 15% Jan. 1959 111
2X Medium & Heavy Trucks
Cargo Vehicles;
Over 10,000 to 20,000 GVW 4 15% Jan. 1982 521
Over 20,000 to 30,000 GVW 4 5% Jan. 1982 522
Over 30,000 GVW 5 5% Jan. 1982 523
Municipal & Industrial Support Vehicles:

Over 10,000 to 20,000 GVW 4 15% Jan. 1982 524
Over 20,000 to 30,000 GVW 6 15% Jan. 1982 525
Over 30,000 GVW 8 15% Jan. 1982 526
Remote Operations Support Vehicles:

Over 10,000 to 20,000 GVW 4 15% Jan. 1982 527
Over 20,000 to 30,000 GVW 5 15% Jan. 1982 528
Over 30,000 GVW 8 15% Jan. 1982 529
Const Equipment 3X Tractors

309-98/328-98
304-64/324-64 Crawler Dozers 6 15% Jan. 1982 530
Rubber Tire Dozers 6 10% Jan. 1982 531
Pipelayers (Sidebooms) 6 15% Jan. 1982 532
Track Type Backhoes 5 10% Jan. 1982 533
Wheeled Type Backhoe/Loaders 5 10% Jan. 1982 534
Front End Loaders/Pipeloaders 6 10% Jan. 1982 535
Reiohdrills 8 15% Jan. 1982 536
Tow Tractors 5 5% Jan. 1982 537
Skid Loader/Trenchers 4 5% Jan. 1982 538
Farm Tractors 5 10% Jan. 1982 539


ISSUE DATE REPLACES

SUBJECT AIA

ACCT. E E E
LIFE VALUE
Const Equipment 4X Cranes
309-98/328-98
304-64/324-64 Hydraulic Yard Crane 5-15 Ton 4 5% Jan. 1982 540
RT/TM Hydraulic Crane 18 - 20 Ton 5 10% Jan. 1982 541
RT/TM Hydraulic Crane 80 -100 Ton 8 15% Jan. 1982 544
TM Hydraulic Crane 115-140 Ton 10 15% Jan. 1982 545
Mobile Lattice Boom Crane 50 Ton 6 10% Jan. 1982 546
Crawler Lattice Boom 50 Ton 6 10% Jan. 1982 549
Crawler Lattice Boom 100-150 Ton 8 10% Jan. 1982 146
Crawler Lattice Boom 225-300 Ton 10 15% Jan. 1982 147
Crawler Lattice Boom 400 Ton 12 15% Jan. 1982 148
8X Road Grading Equipment-Self Propelled

Graders 5 10% Jan. 1982 581
Gradalls 5 10% Jan. 1982 582
Scrapers 10 15% Jan. 1982 583
Vibratory Compactors 6 10% Jan. 1982 584
Sweeper Road Diesel Driven 5 10% Jan. 1982 585
Sweeper Yard Die sel Driven 5 10% Jan. 1982 586
Sweeper Warehouse Electric Driven 4 5% Jan. 1982 587
Off-Road Earth Haulers 6 10% Jan. 1982 588
Const Equipment 5X Air Compressors Diesel Driven 4 5% Jan. 1982 550

General 160-760 cfm
304-61/324-61 6X Welding Machines; Diesel Driven 4 5% Jan. 1982 560
304-64/324-64 300/400 amps
7X Concrete Mixers 1/2 - 3 1/2 cy 5 5% Jan. 1982 570
24X Floodlight Gensets 6 kw, Diesel Driven 4 5% Jan. 1982 610

Generator Sets, 10-15 kw, Diesel Driven 4 5% Jan. 1982 611
Generator Sets, 75 kw, Diesel Driven 5 10% Jan. 1982 613


ISSUE DATE REPLACES

SUBJECT AIA

ACCT. E E E
LIFE VALUE
Const Equipment 29X Welding Machines Electric Driven 4 5% Jan. 1982 620
General 300/500 amps
304-61/324-61 43X Portable A/C 5 - 055
304-64/324-64
89X Forklifts
Forklift Truck 2,500-4,000 lb. Electric 4 10% Jan. 1982 650

Walkic Pallet Truck 2,000-4,000 lb., Elec. 4 10% Jan. 1982 651
Forklift Truck 5,000-10,000 lb., diesel 5 10% Jan. 1982 652
Sideloader Forklift 20,000-40,000 lb. diesel 6 10% Jan. 1982 656
Marine Equip Marine Equipment-Steel Hull 13 1/3 NIL 191

309-93/328-93 Marine Equipment-Wooden Hull 13 1/3 NIL 192
Aramco Repair Barge ARB #1 13 1/3 NIL Jan. 1959 191
309-94/328-94
Aircraft-Major Aircraft - Major Components

Components
309-95/328-95 Aircraft-Twin Otter DHC-6 (New) 10 10% - 194
Aircraft-Twin Otter DHC-6 (Second Hand) 4 10% - 195
Helicopter - Bell 10 10% - 196
Aircraft F-27 10 10% - 197
Aircraft - Gulf Stream 10 10% - 198
Aircraft - Rockwell Turbo Commander 4 10% - 200
Aircraft - Boeing 737 10 10% - 206
Approved: _______________________
AAN:sw
W/C #M539

General Instruction Manual: Accounting Policy, Methods & Systems Department

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

General Instruction Manual: Accounting Policy, Methods & Systems Department

Uploaded by

Copyright:

Available Formats

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION NO.

GENERAL INSTRUCTION MANUAL 202.330

DZIT Department of Zakah and Income Tax

1.2 ENTRY CODE

E/C 896 Depreciation Expense

VO 7 Fixed Assets Activity

1.4 GENERAL INSTRUCTION

GI 202.331 Drilling Equipment - Servic e Lives and Depreciation

* CHANGE ** ADDITION NEW INSTRUCTION COMPLETE REVISION

GENERAL INSTRUCTION MANUAL 202.330

2.1 DEPRECIABLE CAPITAL ASSET

2.3 SERVICE LIFE

3. CHANGES OF SERVICE LIVES :

* CHANGE ** ADDITION NEW INSTRUCTION COMPLETE REVISION

GENERAL INSTRUCTION MANUAL 202.330

4.2.1 LIFE TO DATE.

e = Service life in months

f = Accumulated depreciation to the end of the previous month.

4.2.2 REMAINING VALUE/REMAINING LIFE.

Where: a = Depreciation for current month

g = Accumulated depreciation to the end of the previous year calculated as full

* CHANGE ** ADDITION NEW INSTRUCTION COMPLETE REVISION

GENERAL INSTRUCTION MANUAL 202.330

h = Number of months from the later of the beginning depreciation date or

* CHANGE ** ADDITION NEW INSTRUCTION COMPLETE REVISION

GENERAL INSTRUCTION MANUAL 202.330-5

Item Rate Description Est. Life

0020 Mechanical PABX Switch (50X) 6

0025 Buildings, Permanent (other than item rate code 72) 25

0037 Oil Sewers, Sanitary Sewers 14

0043 Furnaces, Boilers, Heaters 17

0052 Dryers, Kilns, disposal Furnaces 20

* CHANGE ** ADDITION NEW INSTRUCTION COMPLETE REVISION

GENERAL INSTRUCTION MANUAL 202.330-5

Item Rate Description Est. Life

0062 Laboratory & Testing Equipment 10

0067 Conveyors, Elevators 10

0072 Portable/Temporary Buildings (other than item rate code 25) 8

0078 Drafting & Surveying Equipment 8

(W/C #672) Approved: ________________________

* CHANGE ** ADDITION NEW INSTRUCTION COMPLETE REVISION

GENERAL INSTRUCTION MANUAL 202.330-10

Crude Oil General *

14 Roads, Walks, Pavements 20 20 20 20 20 20 20 20 21 10 21

19 Railroad Trackage & Spurs 25 15

* Excludes 304-61. See Supplement 202.330-20.

GENERAL INSTRUCTION MANUAL 202.330-10

Crude Oil General *

38 Fire Protection Pipelines 12 12 12 12 12 12 12 12 12

43 Furnaces, Boilers, Heaters 12 17 17 17 17 17 17 20 17

55 Compressors, Blowers, Exhaustors 10 10 10 19 10 10 10 10 15 10 10

63 Stationary Hoists, Derricks, Cranes 10 10 10 10 10 10 10 10 10 10 10

* Excludes 304-61. See Supplement 202.330-20.

GENERAL INSTRUCTION MANUAL 202.330-10

Crude Oil General *

71 Superstructures, Stairways, Elev. Walks 15 15 15 15 20 15 15 15 15

* Excludes 304-61. See Supplement 202.330-20.

GENERAL INSTRUCTION MANUAL 202.330-15

14 Roads, Walks, Pavements 20 20 20 20 20 20 20 20 21 10

19 Railroad Trackage & Spurs 25 15

24 Well Head Equipment 15 15

GENERAL INSTRUCTION MANUAL 202.330-15