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. Measured at cost 2. If you do not receive an email within 10 minutes, your email address may not be registered, Absent reliable market data, a discounted cash flows model is otherwise used. 26 ASC 360 Property, Plant, and Equipment 437. 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. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Refer to ASC 360 and IAS 16 and 40 for all of the specific requirements applicable to Post navigation. U.S. GAAP on property, plant, and equipment and the impairment or disposal of long-lived assets in ASC 3601 requires entities to test a long-lived asset or group of assets for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable (see ASC 360 … The Real Estate Topics are found at ASC 970 through ASC 978. 24 ASC 340 Other Assets and Deferred Costs 389. Property, plant, and equipment basically includes any of a company’s long-term, fixed assets. Leases of assets under construction (covered by ASC 360, Property, Plant and Equipment) Consequential amendments address interaction with other guidance. Measured at cost 2. ASC 360-10 provides guidance on accounting for property, plant, and equipment, and the related accumulated depreciation on those assets. These disclosures should be made as if the capitalized 21 ASC 325 Investments—Other 323. Cost includes (A) (A) all costs necessary to make the asset ready for … 1. FRS 116, Property, Plant and Equipment (supersedes FRS 116 2004) Executive summary 15 3.1 Residual value 15 3.2 Elements of cost 16 3.3 Subsequent costs 16 3.4 Depreciation 16 3.5 Exchange of assets 16 3.6 Assets under construction 17 3.7 Revaluation model 17 3.8 Derecognition 17 3.9 Disclosures 17 3.10 Transitional provisions 17 1. ASC 360 prescribes a three-step trigger-based process for long-lived assets. 20 ASC 323 Investments—Equity Method and Joint Ventures 285. Property, Plant and Equipment, ASC 360. accta December 15, 2015 November 30, 2018 U.S. GAAP by Topic. 22 ASC 326 Financial Instruments—Credit Losses 331. Enter your email address below and we will send you your username, If the address matches an existing account you will receive an email with instructions to retrieve your username, I have read and accept the Wiley Online Library Terms and Conditions of Use, https://doi.org/10.1002/9781119652663.ch26. Learn more. ASC 360-10 provides guidance on accounting and reporting on property, plant, and equipment, including accumulated depreciation. and you may need to create a new Wiley Online Library account. Copyright © 2020 Deloitte Development LLC. For more information about our organization, please visit ey.com. Updates to ASC 853, Service Concession Arrangements, clarify the right to use the infrastructure in a service concession arrangement is not in ASC 842’s scope. Property, Plant and Equipment, ASC 360. accta February 10, 2018 U.S. GAAP by Topic. Property, plant, and equipment are tangible property used in a productive capacity that will benefit the reporting entity for a period exceeding one year. Cost includes (A) (A) all costs necessary to make the asset ready for intended use 3. 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 … Please check your email for instructions on resetting your password. Like all assets, intangible assets are those that are expected to generate economic returns for the company in the future. Working off-campus? Entities use historical cost to value property, plant, and equipment. In particular, the relevant guidance is included in the “Impairment or Disposal of Long-Lived Asset” subsections of ASC 360 … Prior to the issuance of ASC 842, the accounting for these land easements was somewhat diverse. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. They include land, buildings, machinery, furniture, and tools. Next. Determination of costs is critical to proper accounting for property, plant, and equipment. Initial measurement of property, plant and equipment. Cost includes (A) (A) all costs necessary to make the asset ready for intended use 3. They include … This includes interest costs incurred during the period of time necessary to ready the asset for use. They include land, buildings, machinery, furniture, and tools. 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 … This chapter offers information on accounting and reporting on property, plant, and equipment, including accumulated depreciation. FASB Accounting Standards Codification Manual, SEC Rules & Regulations (Title 17 — Commodity and Securities Exchanges), Trust Services Principles, Criteria, and Illustrations, Principles and Criteria for XBRL-Formatted Information, Audit and Accounting Guides & Audit Risk Alerts, Other Publications, Press Releases, and Reports, Dbriefs Financial Reporting Presentations, Business Combinations — SEC Reporting Considerations, Consolidation — Identifying a Controlling Financial Interest, Contingencies, Loss Recoveries, and Guarantees, Environmental Obligations and Asset Retirement Obligations, Equity Method Investments and Joint Ventures, Equity Method Investees — SEC Reporting Considerations, Foreign Currency Transactions and Translations, Guarantees and Collateralizations — SEC Reporting Considerations, Impairments and Disposals of Long-Lived Assets and Discontinued Operations, Multiple-Element Arrangements — A Roadmap to Applying the Revenue Recognition Guidance in ASU 2009-13, Qualitative Goodwill Impairment Assessment — A Roadmap to Applying the Guidance in ASU 2011-08, SEC Comment Letter Considerations, Including Industry Insights, Software Revenue Recognition — A Roadmap to Applying ASC 985-605, Transfers and Servicing of Financial Assets, Roadmaps Currently Available Only as a PDF. ) all costs necessary to make the asset for use is otherwise used services to clients on the or... 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