When this is the case, the asset group for that particular long-lived asset is the entity itself. 360 Property, Plant, and Equipment . Consolidated Condensed Statements of Cash Flows - USD ($) 9 Months Ended; Sep. 26, 2020 U.S. Well Services HQ 1360 Post Oak Boulevard, Suite 1800 Houston, TX 77056 832-562-3730 The CGU concept is not defined or used elsewhere in U.S. GAAP, while … This page provides an overview of the Board’s response and selected resources. POSTMASTER: Send address … FASB Accounting Standards Codification Manual Find the GAAP Tool FASB Literature. FASB Accounting Standards Codification Manual Find the GAAP Tool FASB Literature. 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 … SEC. 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. > 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. ©2020 Nature's Sunshine Products, Inc. All rights reserved. Codification Is Effective Casual And Annual Periods Ending 9 / 1 781 Words | 4 Pages. To capitalize an item means the cost will be recorded as the cost of an asset. Amend paragraph 360-10-60-1 to reflect the moving of paragraph 974-605-25-2 to paragraph 974-720-25-2. As stated in ASC 360-10-35-20, if an impairment loss is recognized, the adjusted carrying amount of a long-lived asset should become its new cost basis. 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. Other. This process may also be referred to as “deferring a cost.” b. Data and analysis pertaining to the entity’s operations are the primary sources for determining if an indicator of impairment is present. This feature is not available in the basic view. 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. of the Financial Accounting Foundation . Consolidated Balance Sheets - USD ($) $ in Thousands. Dec. 31, 2018 LIFO … ASC 360 Impairment Testing: Long-Lived Assets Classified as Held and Used. Property, Plant, and Equipment (Topic 360) Derecognition of in Substance Real Estate— a Scope Clarification . Accounting Standards Update 2020-10—Codification Improvements - FASB Codification . 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. The Topics include: a. LIFO … 168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles. Previous Section Next Section . Assets . A business that, on acquisition, meets all of the criteria in paragraph 360-10-45-9 to be classified as held for sale. 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. To submit general feedback, click, The FASB Accounting Standards Codification. It is the responsibility of the entity to regularly assess whether there are indicators of impairment present for an asset group. This is done by comparing the total undiscounted future cash flows of the long-lived asset (asset group) to its carrying amount. The excess of the carrying amount of the long-lived asset (asset group) over its Fair Value should be recognized as the impairment loss. Intangibles—Goodwill and Other (Topic 350) Testing Indefinite-Lived Intangible Assets 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. Long-lived assets to be The primary asset of an asset group therefore cannot be land or an intangible asset not being amortized. Derecognition of in Substance Real Estate— a Scope Clarification . criteria in paragraph 360-10-45-9 2. FINANCIAL ACCOUNTING SERIES (ISSN 0885-9051) is published quarterly by the Financial Accounting Foundation. disposed of by sale or abandonment. The term authoritative includes all level AD GAAP that has been issued by a standard setter. 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. FASB accounting standards codification. December 2011 . 10 Overall . 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. 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. The guide also discusses the capitalization of costs, such as construction and development costs and software costs, as well as the subsequent accounting for PP&E, including impairments, depreciation and amortization, and asset … In certain situations, a long-lived asset, such as a corporate headquarters, may not have identifiable cash flows that are independent of the cash flows of other assets and liabilities. 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. GASB Pronouncements. 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. © 2020 Stout Risius Ross, LLC   |   Stout is not a CPA firm. The FASB is currently reviewing Credit Losses, Leases and Revenue Recognition. DART pending content manager is OFF You are here ... 10 Overall . Government. The primary asset is the principal long-lived tangible asset being depreciated or intangible asset being amortized that is the most significant component asset from which. The amendments in this proposed Update would change the requirements for … The full subscription rate is $242 per year. ASU2013-06. This chapter discusses the concepts, rules, … U.S. Well Services HQ 1360 Post Oak Boulevard, Suite 1800 Houston, TX 77056 832-562-3730 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. 10: 84: Other (expense) income, net (77) (41) (197) (100) Gain on sale of assets: 55: 0: 132: 2,472: Income (loss) from continuing operations: 151 (1,288) (557) (614) Income (loss) from discontinued operations (Note 4) (31) 85: 917: 126: Net income (loss) $ 120 $ (1,203) $ 360 $ (488) Net income (loss) per share: basic Continuing operations: $ 0.08 $ (0.98) $ (0.29) $ (0.47) Discontinued operations: (0.02) 0.06: … 10 FASB Codification Exercise (CE 10.1) a. Whether other assets of the group would have been acquired by the entity without the asset, ii. 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. The CGU concept is not defined or used elsewhere in U.S. GAAP, while … Feature Pane - FASB Response to COVID-19 - More Link 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. 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. Consolidated Statements of Income; Consolidated Statements of Comprehensive Income; Consolidated Balance Sheets Issued in August 2001, Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 360, Property, Plant, and Equipment (“ASC 360”) addresses financial accounting and reporting for the impairment of long-lived assets and for … Financial Accounting Standards Board 401 Merritt 7 PO Box 5116 Norwalk, CT 06856-5116 Please ask for our Product Code No. This page provides an overview of the Board’s response and selected resources. The term reporting unit is defined in ASC 350 as the same level as or one level below an operating segment. 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 … FASB Accounting Standards Codification ... Supersede paragraphs 330-10-30-19 and 330- 10-45-2 to reflect the removal of Subtopic 605-35. Other. A probability-weighted approach may be useful in considering the likelihood of those possible outcomes. ASC 360, Property, Plant, and Equipment, consists of two subtopics. What Are the Main Provisions? 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. CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions, $ in Millions. See those Topics for general guidance. 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. ASC 360 provides general guidelines as to when an asset (asset group) should be tested for impairment. 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). Issued in August 2001, Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 360, Property, Plant, and Equipment (“ASC 360”) addresses financial accounting and reporting for the impairment of long-lived assets and for long-lived assets to be disposed of. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public … A business or nonprofit activity that, on acquisition, meets the criteria in >> More Private Company Decision-Making Framework Written comments should be addressed to: Technical Director The FASB Accounting Standards Codification® is organized into Areas, Topics, Subtopics, and Sections. This Exposure Draft of a proposed Accounting Standards Update of Topic 360 is issued by the Board for public comment. Step II of the impairment test, as per ASC 360, if necessary, involves quantifying the Fair Value of the Asset Group (i.e., financial assets, tangible assets, intangible assets, and liabilities, as applicable). ASC 360-20 notes the following: A business that, on acquisition, meets all of the criteria in paragraph 360-10-45-9 to be classified as held for sale. Subtopic 360-10 establishes held for sale criteria in paragraphs 360-10-45-9 through 45-14. These assumptions should be within reason in relation to assumptions used in the past. ASC 360-10-45 Other Presentation. FASB Accounting Standards Codification Manual . A business that, on acquisition, meets the criteria in paragraph 360-10- 45-9 to be classified as held for sale. ... ASC 360-10 notes that long-lived tangible assets include land and land improvements, buildings, machinery and equipment, and furniture and fixtures. Cover. Dec. 28, 2019 … 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. ASC 360-10-45 Other Presentation. Dec. 31, 2019 Codification . 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. 972-10-05-1 The Codification contains several Topics for real estate due to the differing accounting treatment for various real estate subindustries. 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). Dec. 31, 2019. SEC. Document and Entity Information; Financial Statements. GASB Pronouncements. The level of investment that would be required to replace the asset, iii. On July 1, 2009, the FASB Accounting Standards Codification TM became the single official source of authoritative, nongovernmental U.S. generally accepted accounting principles (GAAP). 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). Goodwill is only included in the asset group if the group is or includes the reporting unit with goodwill. ASC 360 Property, Plant, and Equipment. Discontinued Operations - Assets and Liabilities Held for Sale (Details) - USD ($) $ in Thousands A significant decrease in the market price of a long-lived asset (asset group), A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition, A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator, An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group), A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group), A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life (the term “more likely than not” refers to a level of likelihood that is more than 50 percent). An … The Codification is effective casual and annual periods ending 9/15/2009. 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.”. a consensus of the FASB Emerging Issues Task Force. U.S. Well Services HQ 1360 Post Oak Boulevard, Suite 1800 Houston, TX 77056 832-562-3730 Consolidated Condensed Balance Sheets - USD ($) $ in Millions. GASB Pronouncements. Accounting Standards Update 2018-10—Codification ... - FASB A business that, on acquisition, meets all of the criteria in paragraph 360-10-45-9 to be classified as held for sale. As per ASC 360, for the long-lived asset impairment testing, goodwill should be included in an asset group to be tested for impairment only if the asset group is or includes a reporting unit. Learn about the Codification and how to use it here. These steps are discussed in detail in the latter part of this article. The amount expensed in … Assets . 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