FASB: A Look at Revised Standards for Asset Impairments and Discontinued Operations
✍ Scribed by Paul Munter
- Publisher
- John Wiley and Sons
- Year
- 2002
- Tongue
- English
- Weight
- 64 KB
- Volume
- 13
- Category
- Article
- ISSN
- 1044-8136
No coin nor oath required. For personal study only.
✦ Synopsis
Because of ongoing problems in determining when to recognize an impairment loss on long-lived assets, as well as questions about the applicability of the discontinued operations requirements found in APB Opinion No. 30, Reporting the Results of Operations-Reporting the Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring Events and Transactions, the FASB found it necessary to try to clarify the literature by issuing FAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. FAS No. 144, issued in August 2001, supersedes the provisions of FAS No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of, which previously provided guidance on determining the amount and timing of an impairment of long-lived assets. Additionally, FAS No. 144 amended ARB No. 51, Consolidated Financial Statements, to eliminate the exception to consolidation for a temporarily controlled subsidiary. Originally, ARB No. 51 contained three exceptions to the notion that a