ASC 360 prescribes a three-step trigger-based process for long-lived assets. 71 pages. Impairment testing is required whether in the case of a “triggering event”, as defined in ASC 350 – Intangibles – Goodwill and Other, and in ASC 360 – Plant, Property and Equipment. This area is now governed by FASB ASC 360, Property Plant and Equipment. and Property, Plant, and Equipment (Topic 360) No. They include land, buildings, machinery, furniture, and tools. 360 20 55 69 Pending Content Transition Date P June 15 2012 N December 15 2013; Texas Christian University ; ACCT 60010 - Spring 2014. Derecognition of in Substance Real Estate— Scope Clarification. property, plant and equipment and investment property, except for differences related to impairment accounting (which are covered in another of our comparisons, U.S. GAAP vs. IFRS: Impairment of long-lived assets). Property, Plant and Equipment is to be regarded as the surrogate carrying amount of “prepaid lease payments”. 6 pages. 360, Property, Plant, and Equipment, to clarify that the accounting and disclosure guidance for collections in Subtopic 958-360, Not-for-Profit Entities—Property, Plant, and Equipment, applies to business entit ies as well as not-for-profit entities, consistent with what was indicated in Statement 116. Who Is Affected by the Amendments in This Update? Written comments should be addressed to: Technical Director File Reference No. within the scope of ASC 360, Property, Plant and Equipment, for purposes of evaluating whether the asset’s carrying amount is impaired. Investments in equity securities and available-for-sale securities under ASC 321-10 and ASC 326-10, respectively. Roger Philipp, CPA, CGMA, explains Plant, Property, and Equipment as Fixed Assets in this video. Property, plant, and equipment are tangible property used in a productive capacity that will benefit the reporting entity for a period exceeding one year. View more. ASC 360‐20, Real Estate Sales , which provides guidance on the sale of real estate other than retail land. The term authoritative includes all level AD GAAP that has been issued by a standard setter. the criteria to be reported as a discontinued operation is within the scope of ASC 360-10, Property, Plant, and Equipment — Overall. Property, Plant, and Equipment (Topic 360) Derecognition of in Substance Real Estate— a Scope Clarification . Indefinite-lived intangibles under ASC 350-30. The test for impairment under ASC 360 consists of the following steps: View FASB ASC 360 Property, Plant and Equipment from ACCT 60010 at Texas Christian University. ASC 360-10 provides guidance on accounting and reporting on property, plant, and equipment, including accumulated depreciation. This Exposure Draft of a proposed Accounting Standards Update of Topic 360 is issued by the Board for public comment. Do you accept the terms? Study on the go. Other Related Materials. Accounting Standards Codification (ASC 360), Property, Plant and Equipment (“PP&E”) provides guidance with respect to impairment testing for a company’s long-lived assets such as property, plant, equipment and intangibles. In particular, the relevant guidance is included in the “Impairment or Disposal of Long-Lived Asset” subsections of ASC 360-10. 2) Long-lived assets, such as property, plant and equipment (PP&E), finite-lived intangible assets and asset groups under ASC 360-10. IAS 16 outlines the accounting treatment for most types of property, plant and equipment. December 2011 . Refer to ASC 360 and IAS 16 and 40 for all of the specific requirements applicable to … FRS 124, Related Party Disclosures: zThe scope restriction to public listed companies and their subsidiaries has been removed and FRS 124 now applies to all entities (except exempt entities - see SOP 1), including state controlled enterprises. Property, Plant, and Equipment (Topic 360) a ® An Amendment of the FASB Accounting Standards Codification No. ASC 360‐10 provides guidance on accounting and reporting on property, plant, and equipment, including accumulated depreciation. ASC 360-10 provides guidance on accounting and reporting on property, plant, and equipment, including accumulated depreciation. Triggering event-based impairment testing is an issue even for those who have made accounting elections whereby assets are being amortized rather than tested annually for impairment. IN this video, I discuss property plant and equipment also known as PPE. 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 210-10-45 provides guidance on the balance sheet presentation. ASC 360-10 provides guidance on accounting and reporting on property, plant, and equipment, including accumulated depreciation. [1] All direct costs of constructing an entity's own tangible fixed assets are capitalized. 2011-10 . spare parts to be used within one year, ASC 360 “Property, Plant, and Equipment” is irrelevant since it deals with long-lived assets with a useful life of more than one year. Download the iOS; Download the Android app. 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. Accounting Standards Update Financial Accounting Standards Board of the Financial Accounting Foundation 401 MERRITT 7, PO BOX 5116, NORWALK, CONNECTICUT 06856 -5116 . Equity method investments under ASC 323-10 . Home computers; Florida State University; ACG 5515 - Spring 2013. Financial Accounting Standards Board Page 1 of 71 October 03, 2013 360 Property, Plant, and Property, plant and equipment is initially measured at its cost, subsequently measured either using a cost or revaluation model, and depreciated so that its depreciable amount is allocated on a systematic basis over its useful life. The recorded amount of an asset includes all of the costs necessary to get the asset set up and functioning properly for its intended use, including interest. I think the basics are pretty straight forward: capitalize costs incurred to get the asset placed in service, then depreciate over its useful life using a reasonable method such as straight line, MACRS (DDB), etc. Property, plant, and equipment are physical or tangible assets that are long-term assets that typically have a life of more than one year. Proposed Accounting Standards Update—Property, Plant, and Equipment (Topic 360): Derecognition of in Substance Real Estate—a Scope Clarification (a consensus of the FASB Emerging Issues Task Force) By clicking on the ACCEPT button, you confirm that you have read and understand the FASB Website Terms and Conditions. The guidance in ASC 360 addresses the accounting for long-lived nonfinancial assets, differentiating between assets that are “held and used,” assets that are “held for sale,” and assets that an entity has decided to abandon. 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 Examples of property, plant, and equipment … Home computers. EITF-100E Proposed … a consensus of the FASB Emerging Issues Task Force. 10 Overall 220 Income Statement—Reporting Comprehensive Income 225 Income Statement 235 Notes to Financial Statements 270 Interim Reporting 280 Segment Reporting 323 Investments—Equity Method and Joint Ventures 330 Inventory 350 Intangibles—Goodwill and Other 360 Property, Plant, and Equipment 470 Debt 605 Revenue Recognition 720 Other Expenses 740 Income Taxes 810 … Once you’ve determined there’s an indication of impairment, ASC 360 Property, Plant, and Equipment (ASC 360) specifies these steps to be completed in the calculation of an impairment: If impairment indicators are identified, test the recoverability of the asset by comparing the cash flows expected to be generated over the asset’s life against its current carrying value. Refer to our FRD, Impairment or disposal of long-lived assets, for further details. FASB Accounting Standards Codification (ASC) Topic 360, “Property, Plant, and Equipment,” provides guidance for the impairment of long-lived assets that are classified as held and used. Therefore, we are fairly certain that the spare parts should be treated as inventory. FASB ASC 360 Property, Plant and Equipment. 2014-08 April 2014 Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity An Amendment of the FASB Accounting Standards Codification ® The FASB Accounting Standards Codification® is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied … 28ASC 360 Property, Plant, and Equipment Perspective and Issues Subtopics Scope and Scope Exceptions ASC 360-10, General ASC 360-10, Impairment of Disposal of Long-Lived Assets ASC 360-20 Overview ASC … - Selection from Wiley GAAP 2018, 16th Edition [Book] And Equipment ( Topic 360 is issued by the Board for public comment that the parts... 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