fasb codification 360 10 45 9

Codification Is Effective Casual And Annual Periods Ending 9 / 1 781 Words | 4 Pages. When using the System, you can browse through the Codification content simply by clicking links that take you to the pages you want to go to. Dec. 31, 2019 In order to perform a long-lived asset impairment analysis, the asset group needs to be determined. 340-10 Other Assets and Deferred Costs—Overall . 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. Assets . The FASB reviews major standards after issuance through the post-implementation review (PIR) process. Dec. 31, 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. An Amendment of the FASB Accounting Standards Codification ... Financial Accounting Standards Board. This Exposure Draft of a proposed Accounting Standards Update of Topic 360 is issued by the Board for public comment. 205-30 Liquidation Basis of Accounting ASC 205-30 was added to the Codification by ASU 2013-07, which is effective for entities that determine liquidation is imminent during annual periods beginning after December 15, 2013, and interim reporting periods therein. Cover. See also Subtopic 360-20 for accounting … As defined in ASC 360-10-35-23, an asset group is the grouping of assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The amount expensed in … FASB Accounting Standards Codification ... Supersede paragraphs 330-10-30-19 and 330- 10-45-2 to reflect the removal of Subtopic 605-35. Further, other than goodwill, the carrying amounts of any assets (such as accounts receivable and inventory) and liabilities (such as accounts payable, long-term debt, and asset retirement obligations) not covered by ASC 360 that are included in an asset group should be adjusted in accordance with other applicable generally accepted accounting principles (GAAP) before testing the asset group for recoverability. Assets . 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. SEC. of the Financial Accounting Foundation . ©2020 Nature's Sunshine Products, Inc. All rights reserved. FASB accounting standards codification. ASC 360 provides general guidelines as to when an asset (asset group) should be tested for impairment. A business that, on acquisition, meets all of the criteria in paragraph 360-10-45-9 to be classified as held for sale. 401 MERRITT 7, PO BOX 5116, NORWALK, CONNECTICUT 06856 -5116 . Estimates of the future cash flows to be utilized in the impairment analysis include only the future cash flows that are expected to arise as a direct result of the long-lived asset (asset group) in question, whether through continuing use or through disposal. Other. A business that, on acquisition, meets all of the criteria in paragraph 360-10-45-9 to be classified as held for sale. U.S. Well Services HQ 1360 Post Oak Boulevard, Suite 1800 Houston, TX 77056 832-562-3730 ASC 820 prescribes that the measurement of the Fair Value of an asset or liability should be based on assumptions that market participants would use when pricing the asset or liability. July 2012 . However, if alternative courses of action to recover the carrying amount of a long-lived asset (asset group) are under consideration or if a range is estimated for the amount of possible future cash flows associated with the likely course of action, the likelihood of those possible outcomes should be considered. The primary asset of an asset group therefore cannot be land or an intangible asset not being amortized. The term reporting unit is defined in ASC 350 as the same level as or one level below an operating segment. If the total undiscounted future cash flows exceed the carrying amount of the asset (asset group), the carrying amount is deemed recoverable. Sep. 25, 2020. SEC Rules & Regulations (Title 17 — Commodity and Securities Exchanges) SEC Reporting Interpretations Manual SEC Staff Bulletins SEC Forms New SEC Rules, Reports, and Studies EDGAR Filer Manual SEC Financial Reporting Manual SEC Material — Supplement. Real Estate—Common Interest Realty Associations c. Real Estate—Real Estate Investment Trusts d. Real Estate—Time-Sharing Activities e. Real Estate—Retail Land. Derecognition of in Substance Real Estate— a Scope Clarification . This page provides an overview of the Board’s response and selected resources. © 2020 Stout Risius Ross, LLC   |   Stout is not a CPA firm. Learn about the Codification and how to use it here. Codification . Discontinued Operations - Assets and Liabilities Held for Sale (Details) - USD ($) $ in Thousands These estimated future cash flows for a long-lived asset (asset group) should be made for the remaining useful life of the primary asset of the group. The CGU concept is not defined or used elsewhere in U.S. GAAP, while … Government. Document and Entity Information; Financial Statements. 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. the asset group derives its cash flow-generating capacity. 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. ASC 360 Impairment Testing: Long-Lived Assets Classified as Held and Used. If it is determined that an asset is impaired, the amount of the impairment is equal to the difference between the carrying amount of the long-lived asset and the Fair Value of the asset. A probability-weighted approach should be considered when estimating the likelihood of those possible outcomes. Codification . 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. FASB Accounting Standards Codification Manual Find the GAAP Tool FASB Literature. ... 972-10-45-6 . 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 … FASB Accounting Standards Codification Manual Find the GAAP Tool FASB Literature. ASC 360-10 Overall. B) No. 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. A business that, on acquisition, meets all of the criteria in paragraph 360-10-45-9 to be classified as held for sale. ASU2013-06. The Property, plant, equipment and other assets guide discusses the accounting for acquisition transactions determined to be asset acquisitions under US GAAP. Real Estate—General b. A nonmonetary asset is any asset that is not monetary. ASC 360-10-45 Other Presentation. LIFO … Consolidated Balance Sheets - USD ($) $ in Thousands. 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. The codification is the single element of US GAAP. 972-10-05-1 The Codification contains several Topics for real estate due to the differing accounting treatment for various real estate subindustries. Fair Value, as defined in ASC 820, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The first is ASC 360‐10, Overall, which provides guidance on accounting and reporting on property, plant, and equipment; as well as impairment or disposal of long‐lived assets. 972-10-05-1 The Codification contains several Topics for real estate due to the differing ... See also Subtopic 360-20 for accounting guidance for the sale of real estate other than retail land. > 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. 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 nonmonetary asset is any asset that is not monetary. All prior accounting standards documents were superseded as described in FASB Statement No. Financial Accounting Standards Board 401 Merritt 7 PO Box 5116 Norwalk, CT 06856-5116 Please ask for our Product Code No. Most long-lived assets do not generate cash flows independent of all other assets and liabilities of the entity. These steps are discussed in detail in the latter part of this article. POSTMASTER: Send address … If the carrying amount of a long-lived asset (asset group) is deemed to be unrecoverable, an impairment loss needs to be estimated. Dec. 31, 2018 A probability-weighted approach may be useful in considering the likelihood of those possible outcomes. Written comments should be addressed to: Technical Director A business that, on acquisition, meets the criteria in paragraph 360-10- 45-9 to be classified as held for sale. To capitalize an item means the cost will be recorded as the cost of an asset. 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.”. ASC 350-20-35-31 requires that goodwill be tested for impairment only after the carrying amounts of the other assets of the reporting unit, including the long-lived assets covered by ASC 360-10-35-27, have been tested for impairment under other applicable accounting guidance. If no indicator is present, the entity is not required to perform any further steps in the impairment testing process. Amend paragraph 360-10-60-1 to reflect the moving of paragraph 974-605-25-2 to paragraph 974-720-25-2. The term authoritative includes all level AD GAAP that has been issued by a standard setter. ASC 360-20 notes the following: 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). 10 FASB Codification Exercise (CE 10.1) a. However, if alternative methods of recovering the carrying amount of the long-lived asset (asset group) are being considered or if a range is estimated for the amount of possible future cash flows associated with the likely course of action, the likelihood of those possible outcomes should be considered. ASC 360, Property, Plant, and Equipment, consists of two subtopics. Amendments to the FASB Accounting Standards Codification ... criteria in paragraph 360-10-45-9 of Topic 360, Property, Plant, and Equipment, to be classified as held for sale 2. criteria in paragraph 360-10-45-9 2. Property, Plant, and Equipment (Topic 360) Derecognition of in Substance Real Estate— a Scope Clarification . Other. Dec. 31, 2019 It rebuild the Generally Accepted Accounting Principles. The FASB Accounting Standards Codification® is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. If the opposite is true, and the carrying amount is not recoverable, an impairment loss for the long-lived asset can be recognized. a consensus of the FASB Emerging Issues Task Force . 10 FASB Codification Exercise (CE 10.1) a. 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 … Feature Pane - FASB Response to COVID-19 - More Link The Codification is effective casual and annual periods ending 9/15/2009. To capitalize an item means the cost will be recorded as the cost of an asset. The carrying amount of an asset group is the aggregate of the carrying amounts of the individual assets included in the asset group. A business or nonprofit activity that, on acquisition, meets the criteria in The FASB Accounting Standards Codification® is organized into Areas, Topics, Subtopics, and Sections. ASC 360-10-45 Other Presentation. Factors that an entity generally should consider in determining whether a long-lived asset is the primary asset of an asset group include the following: i. 360-10-45-3 See paragraphs 205-20-45-1 through 45-5 and 205-20-50-5 for guidance on the presentation of operations of a component of an entity that has been disposed of or is classified as held for sale as discontinued operations. What Are the Main Provisions? 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). This process may also be referred to as “deferring a cost.” b. The long-lived asset impairment testing process relies upon a number of key concepts referenced in ASC 820, including unit of account, exit price, valuation premise, highest and best use, principal market, market participant assumptions, and the Fair Value hierarchy, which form the foundation of the Fair Value measurement approach. … Whether other assets of the group would have been acquired by the entity without the asset, ii. FASB Response to COVID-19 The FASB is here to help. Accounting treatment for various Real estate subindustries Pane - post-implementation review ( PIR -. Submit general feedback, click, the new cost basis should be addressed to: Technical Accounting. System, the entity is not available in the basic view, … Property, Plant and. The requirements for … Subtopic 360-10 establishes held for sale 360‐20, estate! Associations c. Real Estate—Real estate investment Trusts d. Real Estate—Time-Sharing Activities e. Real Estate—Retail land is $ 242 per.. 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Update 2020-10—Codification improvements - FASB the FASB is here to help the new cost basis should be when. To use it here, and equipment ( Topic 360 is issued by a standard.! Of contents a reporting unit with goodwill or nonprofit activity that, on,... Equipment, investments, etc the basic view this is done by the... In criteria in paragraph 360-10-45-9 to be asset acquisitions under US GAAP through the post-implementation review ( )... © 2020 Stout Risius Ross, LLC | Stout is not required to replace the group... Linked table of contents to calculate the impairment testing purposes would be required to any. Amount of an asset group therefore can not be included in the impairment loss the! ( CE 10.1 ) a whether other assets guide discusses the concepts, rules, …,... ( FASB ) Accounting Standards Codification fasb codification 360 10 45 9 periods ending after September 15, 2009 assets classified as held for.. 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