A probability-weighted approach should be considered when estimating the likelihood of those possible outcomes. Discontinued Operations - Assets and Liabilities Held for Sale (Details) - USD ($) $ in Thousands 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. ... 972-10-45-6 . FASB Accounting Standards Codification ... Supersede paragraphs 330-10-30-19 and 330- 10-45-2 to reflect the removal of Subtopic 605-35. Codification Topics at the 600 Level : Topic 605: Revenue Recognition Topic 605 is the only topic at the 600 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. Document and Entity Information; Financial Statements. Specifically, ASC 360 indicates that impairment testing should be completed whenever events or changes in circumstances indicate the asset’s carrying value may not be recoverable. Subtopic 360-10 establishes held for sale criteria in paragraphs 360-10-45-9 through 45-14. 168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles. Sep. 26, 2020. 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. This page provides an overview of the Board’s response and selected resources. Paragraph-level feedback is not available in the basic view. 360-20 Real Estate Sales. A nonmonetary asset is any asset that is not monetary. Dec. 31, 2019 Other. 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. A business that, on acquisition, meets the criteria in paragraph 360-10- 45-9 to be classified as held for sale. If no indicator is present, the entity is not required to perform any further steps in the impairment testing process. FASB Accounting Standards Codification Manual Find the GAAP Tool FASB Literature. Consolidated Statements of Income; Consolidated Statements of Comprehensive Income; Consolidated Balance Sheets Fair Value referenced here is determined using the guidance in FASB ASC Topic 820, Fair Value Measurement (“ASC 820”). Condensed Consolidated Balance Sheets - USD ($) Sep. 30, 2020. Accounting Standards Codification. This feature is not available in the basic view. ASC 360 provides general guidelines as to when an asset (asset group) should be tested for impairment. ASC 360-20 notes the following: Dec. 31, 2019 The loss should be allocated to the long-lived assets of the group on a pro-rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long-lived asset of the group should not reduce the carrying amount of that asset below its Fair Value whenever that Fair Value is determinable without undue cost and effort. Goodwill is only included in the asset group if the group is or includes the reporting unit with goodwill. A business that, on acquisition, meets all of the criteria in paragraph 360-10-45-9 to be classified as held for sale. The primary asset of an asset group therefore cannot be land or an intangible asset not being amortized. Supersede paragraphs 340-10-60-5 through 60-6 to reflect the removal of Subtopics 605-20 and 605-35. These steps are discussed in detail in the latter part of this article. Product information only applies to the U.S. © 2020 Stout Risius Ross, LLC   |   Stout is not a CPA firm. 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. ASC 360 Impairment Testing: Long-Lived Assets Classified as Held and Used. >> More Private Company Decision-Making Framework 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. Instead the long-lived asset and the complementary assets are grouped together for impairment testing purposes. The level of investment that would be required to replace the asset, iii. Property, Plant, and Equipment (Topic 360) Derecognition of in Substance Real Estate— a Scope Clarification . criteria in paragraph 360-10-45-9 2. In the Codification Research System, the Section is the primary working area. The FASB reviews major standards after issuance through the post-implementation review (PIR) process. Restoration of a previously recognized impairment loss is not allowed. FASB Accounting Standards Codification Manual . The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public … What Are the Main Provisions? Accounting Standards Update 2012-02 . A business that, on acquisition, meets all of the criteria in paragraph 360-10-45-9 to be classified as held for sale. The Codification is effective casual and annual periods ending 9/15/2009. FASB Accounting Standards Codification Study 3. 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. See also Subtopic 360-20 for accounting … The excess of the carrying amount of the long-lived asset (asset group) over its Fair Value should be recognized as the impairment loss. LIFO … This is done by comparing the total undiscounted future cash flows of the long-lived asset (asset group) to its carrying amount. 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. 2020-10—Codification improvements - FASB the FASB Emerging Issues Task Force fasb codification 360 10 45 9 proposed Accounting Standards Codification ( )! 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