Financialreportingdevelopments Bb1887 Impairment
Financial reporting developments
A comprehensive guide
Impairment or Financial reporting disposal of longdevelopments lived assets
Revised October 2011
To our clients and other friends
ASC 360-10, Impairment and Disposal of Long-Lived Assets (ASC 360), provides accounting guidance for impairments of assets that are held for use, held for sale and to be disposed of by other means. In one of its more challenging aspects, ASC 360-10 requires the use of fair value measurements for impairment of assets that are unique and not widely traded. The following publication provides an overview of the accounting for asset impairments as well as interpretive guidance. We hope this publication will help you understand the accounting for the impairment or disposal of longlived assets. We are available to assist you in understanding and complying with this standard and are ready to answer your particular concerns and questions.
October 2011
Financial reporting developments Impairment or disposal of long-lived assets
Contents
1 Overview ................................................................................................................... 1
1.1 Introduction........................................................................................................................... 1 1.2 Scope .................................................................................................................................... 2 1.3 Long-lived assets to be held and used ...................................................................................... 4 1.3.1 Indicators of impairment — Step 1................................................................................... 4 1.3.2 Test for recoverability — Step 2 ....................................................................................... 5 1.3.3 Measurement of an impairment loss — Step 3 .................................................................. 5 1.3.4 Allocation of an impairment
A comprehensive guide
Impairment or Financial reporting disposal of longdevelopments lived assets
Revised October 2011
To our clients and other friends
ASC 360-10, Impairment and Disposal of Long-Lived Assets (ASC 360), provides accounting guidance for impairments of assets that are held for use, held for sale and to be disposed of by other means. In one of its more challenging aspects, ASC 360-10 requires the use of fair value measurements for impairment of assets that are unique and not widely traded. The following publication provides an overview of the accounting for asset impairments as well as interpretive guidance. We hope this publication will help you understand the accounting for the impairment or disposal of longlived assets. We are available to assist you in understanding and complying with this standard and are ready to answer your particular concerns and questions.
October 2011
Financial reporting developments Impairment or disposal of long-lived assets
Contents
1 Overview ................................................................................................................... 1
1.1 Introduction........................................................................................................................... 1 1.2 Scope .................................................................................................................................... 2 1.3 Long-lived assets to be held and used ...................................................................................... 4 1.3.1 Indicators of impairment — Step 1................................................................................... 4 1.3.2 Test for recoverability — Step 2 ....................................................................................... 5 1.3.3 Measurement of an impairment loss — Step 3 .................................................................. 5 1.3.4 Allocation of an impairment