FASB Accounting Standards Codification Study 3 ASC 360-10-45-9 outlines a list of six criteria that an asset must meet in order to be classified as “held-for-sale.” These criteria are listed completely in Exhibit E, and include the following: Management plans to sell the asset; the asset can be sold immediately; the company is actively seeking a buyer; the asset is presumed salable within one year; the asset is … An Amendment of the FASB Accounting Standards Codification ... Financial Accounting Standards Board. POSTMASTER: Send address … ASC 360-10-45 Other Presentation. 9: 19: 35: Impairment, restructuring and other costs (15) (12) (634) (15) Operating income (loss) 82: 103 (1,300) 426: Benefit plan income, net: 10: 5: 23: 14: Settlement charges (14) (12) (39) (12) Interest (expense) income, net External (7) 1 (11) 3: Interest Expense, Other: 7: 18: 37: 55: Financing costs 0 Income (Loss) from Equity Method Investments: 0: 0: 0: 0: Income (loss) before income taxes: 78: 115 … This type of asset consists of inventory, equipment, investments, etc. FASB Accounting Standards Codification Manual . Paragraph-level feedback is not available in the basic view. Written comments should be addressed to: Technical Director > Planned Major Maintenance Activities 360-10-45-1 An entity shall apply the same method of accounting for planned major maintenance activities in annual and interim financial reporting periods. ASC 360 Impairment Testing: Long-Lived Assets Classified as Held and Used. Estimates of future cash flows used to test that lower-level asset group for recoverability should not be adjusted for the effect of excluding goodwill from the group. CONTENTS . When the “held for sale” criteria in ASC 360-10-45-9 through 45-11 are met, entities are required to recognize a loss for any initial or subsequent write-down of the disposal group to fair value less costs to sell. July 2012 . An Amendment of the FASB Accounting Standards Codification ... Financial Accounting Standards Board . If the disaster occurs near the … Fair Value referenced here is determined using the guidance in FASB ASC Topic 820, Fair Value Measurement (“ASC 820”). Product information only applies to the U.S. Dec. 28, 2019 Long-lived assets to be disposed of by abandonment should continue to be classified as held and used until disposed of with recoverability testing as described above. Discontinued Operations - Assets and Liabilities Held for Sale (Details) - USD ($) $ in Thousands The Property, plant, equipment and other assets guide discusses the accounting for acquisition transactions determined to be asset acquisitions under US GAAP. Accounting Standards Update 2012-02 . ASC 360, Property, Plant, and Equipment, consists of two subtopics. If the carrying amount of a long-lived asset (asset group) is deemed to be unrecoverable, an impairment loss needs to be estimated. Specifically, ASC 360 requires that a company recognize an impairment loss if, and only if, the carrying amount of a long-lived asset (asset group) is not recoverable from the sum of the undiscounted cash flows expected to result from the use and eventual disposal of the asset (the “Recoverable Amount”) and if the carrying amount exceeds the asset’s Fair Value. Dec. 31, 2019. This type of asset consists of inventory, equipment, investments, etc. Consolidated Condensed Balance Sheets - USD ($) $ in Millions. SEC. See also Subtopic 360-20 for accounting … The total undiscounted cash flows, as defined in paragraphs 29 and 30 of ASC 360-10-35, include only the future cash flows that are directly associated with and that are expected to arise as a direct result of the use and eventual disposal of the asset (asset group). Dec. 31, 2019 FASB Accounting Standards Codification Manual Find the GAAP Tool FASB Literature. Examples of indicators of impairment, as discussed in ASC 360-10-35-21, include but are not limited to: Impairment analysis is only required (i.e., test the asset group for recoverability and impairment loss) when an indicator of impairment is present. Editor’s Note: The FASB uses “component of an entity or a group of components of an entity” in the definition of a discontinued operation, rather than the “cash-generating unit” (CGU) concept in IFRSs. Consolidated Condensed Statements of Cash Flows - USD ($) 9 Months Ended; Sep. 26, 2020 The codification is effective for interim and annual periods ending after September 15, 2009. Once the impairment loss is recognized, the adjusted carrying value becomes the long-lived asset’s new cost basis and should be depreciated over its remaining useful life. Property, Plant, and Equipment (Topic 360) No. Amend paragraph 360-10-60-1 to reflect the moving of paragraph 974-605-25-2 to paragraph 974-720-25-2. Page Numbers . FASB Response to COVID-19 The FASB is here to help. A) The Codification was established on 7/1/2009. Accounting Standards Update 2018-10—Codification ... - FASB An … The term authoritative includes all level AD GAAP that has been issued by a standard setter. FASB Accounting Standards Codification Manual Find the GAAP Tool FASB Literature. The codification is the single element of US GAAP. Goodwill is only included in the asset group if the group is or includes the reporting unit with goodwill. If there are indications that the asset’s carrying value may not be recoverable, there are two further steps involved in long-lived asset impairment testing. It rebuild the Generally Accepted Accounting Principles. ASU2013-06. … The FASB reviews major standards after issuance through the post-implementation review (PIR) process. Restoration of a previously recognized impairment loss is not allowed. 10 Overall . U.S. Well Services HQ 1360 Post Oak Boulevard, Suite 1800 Houston, TX 77056 832-562-3730 A business that, on acquisition, meets all of the criteria in paragraph 360-10-45-9 to be classified as held for sale. SEC. Sep. 25, 2020. They are usually dependent on other complementary assets to generate cash flows and, because the unit of accounting for the impairment testing of long-lived assets is based on identifiable cash flows generated, the long-lived asset cannot be tested on its own. These estimates should cover the remaining useful life of the long-lived asset (asset group). The FASB Accounting Standards Codification simplifies user access to all authoritative U.S. generally accepted accounting principles (GAAP) by providing all the authoritative literature related to a particular Topic in one place. Government. A probability-weighted approach may be useful in considering the likelihood of those possible outcomes. ASC 360-10 Overall. ASC 360-10-45 Other Presentation. ASC 360-10-45-9 outlines a list of six criteria that an asset must meet in order to be classified as “held-for-sale.”. The amount expensed in … Whether other assets of the group would have been acquired by the entity without the asset, ii. An indicator of impairment can be defined as anything, such as a new event or circumstance, which could potentially result in the carrying value of the long-lived asset (asset group) not being fully recoverable. 340-10 Other Assets and Deferred Costs—Overall . criteria in paragraph 360-10-45-9 2. Cover. Financial Standards Accounting Board’s (FASB) Accounting Standards Codification (ASC). Codification Topic 360 Property, Plant, and Equipment : Subtopics of Codification Topic 360 360-10 Overall 360-20 Real estate sales : Accounting Terms of Codification Topic 360-10 Activities Asset group Component of an equity Disposal group Firm purchase commitment Impairment Integral equipment Operating segment Probable Reporting unit a consensus of the FASB Emerging Issues Task Force . Consolidated Statements of Income; Consolidated Statements of Comprehensive Income; Consolidated Balance Sheets This Exposure Draft of a proposed Accounting Standards Update of Topic 360 is issued by the Board for public comment. To capitalize an item means the cost will be recorded as the cost of an asset. 360-10-45-2 This Subsection presents guidance for the presentation of impairment or disposal of long-lived assets or asset groups that are classified as: a. The CGU concept is not defined or used elsewhere in U.S. GAAP, while … FASB Accounting Standards Codification Study 3. Sep. 26, 2020. These estimates should incorporate management’s assumptions in regard to the future use of the asset and should be reasonable in relation to the assumptions used in developing other internal prospective financial information, such as budgets and projections. FASB accounting standards codification. As per ASC 360-10-35-21: a long-lived asset (asset group) should be tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. From the Section pages, you can quickly navigate to other Sections in the Subtopic, access archived versions of the Section, and view all paragraphs linking into the Section. The Financial Accounting Standards Board (FASB) is a private, non-profit organization standard-setting body whose primary purpose is to establish and improve Generally Accepted Accounting Principles (GAAP) within the United States in the public's interest. Other. ASC 350 requires that goodwill be tested for impairment at the reporting unit level. Editor’s Note: The FASB uses “component of an entity or a group of components of an entity” in the definition of a discontinued operation, rather than the “cashgenerating unit” (CGU) concept in IFRSs. Codification . Paragraph 210-10-45-2 of the codification states that although prepaid insurance is not a current asset that could be liquidized, it represents cash that would have been spent in the operating year had the prepayment not occurred (FASB, ASC 210-10-45-2). The remaining useful life of the asset relative to other assets of the group (if the primary asset is not the asset of the group with the longest remaining useful life, estimates of future cash flows for the group shall assume the sale of the group at the end of the remaining useful life of the primary asset). Each Area, Topic, and equipment, and furniture and fixtures feedback is not CPA. 820 ” ) Private Company Decision-Making Framework FASB Accounting Standards Update 2020-10—Codification improvements - FASB FASB. That particular long-lived asset can be recognized indicator of impairment is present, the asset if... Done by comparing the total undiscounted future cash flows of the group would have acquired. 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