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Items of property, plant, and equipment are used in the ordinary course of business. They include land, buildings, machinery, furniture, and tools. ASC 360-10 notes that long-lived tangible assets include land and land improvements, buildings, machinery and equipment, and furniture and fixtures. The Property, plant, equipment and other assets guide discusses the accounting for acquisition transactions determined to be asset acquisitions under US GAAP. 25 ASC 350 Intangibles—Goodwill and Other 405. ASC Topic 360, “Property, Plant, and Equipment,” requires entities to evaluate property, plant, and equipment and amortizable finite-lived intangibles, referred to collectively as long-lived assets, for recoverability “whenever events or changes in circumstances indicate that its carrying amount may not be recoverable.” 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 … FASB ASC 350, Intangibles - Goodwill and Other - This topic provides guidance on financial accounting and reporting related to goodwill and other intangibles, other than the accounting at acquisition for goodwill and other intangibles. ASC 360 comprises two Subtopics (Overall and Real Estate Sales). 20 ASC 323 Investments—Equity Method and Joint Ventures 285. and you may need to create a new Wiley Online Library account. Post navigation. Please check your email for instructions on resetting your password. 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. Welcome to the Deloitte Accounting Research Tool (DART)! The FASB also is making a technical correction in Topic 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. Other guidance specific to the real estate subindustries is found in the related Real Estate Topics. ASC 360 calls for a recoverability test to be performed in order to determine if an impairment loss exists, in which case the fair value of an asset or asset group must be determined. ASC 360 prescribes a three-step trigger-based process for long-lived assets. 21 ASC 325 Investments—Other 323. 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 Next. 22 ASC 326 Financial Instruments—Credit Losses 331. Working off-campus? 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 Upon acquisition, the reporting entity should measure and capitalize all the historical costs necessary to deliver the asset to its intended location and prepare it for its productive use. Leases of assets under construction (covered by ASC 360, Property, Plant and Equipment) Consequential amendments address interaction with other guidance. They are not for resale. 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. 26 ASC 360 Property, Plant, and Equipment 437. Use the link below to share a full-text version of this article with your friends and colleagues. Property, plant, and equipment (sometimes referred to as “fixed assets,” “tangible long lived assets,” or “plant assets”) are tangible property used in a productive capacity that will benefit the reporting entity for a period exceeding one year. In particular, the relevant guidance is included in the “Impairment or Disposal of Long-Lived Asset” subsections of ASC 360 … Copyright © 2020 Deloitte Development LLC. 23 ASC 330 Inventory 349. ASC 360-10 provides guidance on accounting for property, plant, and equipment, and the related accumulated depreciation on those assets. For more information about our organization, please visit ey.com. criteria in Subtopic 36020, Property, Plant, and Equipment- —Real Estate Sales, in order to derecognize the in substance real estate. Property, plant, and equipment basically includes any of a company’s long-term, fixed assets. ASC 360-10 provides guidance on accounting for property, plant, and equipment, and the related accumulated depreciation on those assets. B. Initial measurement of property, plant and equipment. 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 … ASC 360-10 provides guidance on accounting and reporting on property, plant, and equipment, including accumulated depreciation. During the construction period The Real Estate Topics are found at ASC 970 through ASC 978. Clarified scope of ASC 610-20 General Initial measurement of property, plant and equipment. Learn about our remote access options. Measured at cost 2. The full text of this article hosted at iucr.org is unavailable due to technical difficulties. Absent reliable market data, a discounted cash flows model is otherwise used. Cost includes (A) (A) all costs necessary to make the asset ready for intended use 3. Post navigation. Cost includes (A) (A) all costs necessary to make the asset ready for … The Business evaluates the recoverability of its long-lived assets in accordance with the provisions of ASC 360, Property, Plant and Equipment (ASC 360). 24 ASC 340 Other Assets and Deferred Costs 389. 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. 942 Financial Services—Depository and Lending, 960 Plan Accounting—Defined Benefit Pension Plans, 962 Plan Accounting—Defined Contribution Pension Plans, 965 Plan Accounting—Health and Welfare Benefit Plans, 972 Real Estate—Common Interest Realty Associations. Situations that may result in subsequent changes to carrying amount include impairment, credit losses, fair value adjustments, depreciation and amortization, and so forth. 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. derecognition guidance in ASC 360-20, Property, Plant, and Equipment: Real Estate Sales, as well as those that contribute nonfinancial assets that are neither a business nor a nonprofit activity to a joint venture or other noncontrolled investee. However, differing views exist in practice on whether parent of an the in substance real estate subsidiary must satisfy the criteria in Subtopic 360-20, Property, Plant, and Equipment—Real Estate Sales, in order to derecognize the real estate. These disclosures should be made as if the capitalized ASC 360-10 provides guidance on accounting and reporting on property, plant, and equipment, including accumulated depreciation. Refer to ASC 360 and IAS 16 and 40 for all of the specific requirements applicable to 1. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. ASC 275 – Presentation, Risks and Uncertainties ASC 730-10 – Expenses, Research and Development ASC 235 – Presentation, Notes to the Financial Statements ASC 360-10 – Property, Plant and Equipment. This chapter offers information on accounting and reporting on property, plant, and equipment, including accumulated depreciation. Property, Plant and Equipment, ASC 360. accta February 10, 2018 U.S. GAAP by Topic. 27 ASC 405 Liabilities 481 Previous. Measured at cost 2. All rights reserved. 1. 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 … Codification Topic 360 Property, Plant and Equipment Initial measurement of property, plant and equipment 1. This Topic comprises two Subtopics (Overall and Real Estate Sales). Prior to the issuance of ASC 842, the accounting for these land easements was somewhat diverse. This includes interest costs incurred during the period of time necessary to ready the asset for use. Property, plant, and equipment are some of the most significant items in the statement of financial position and usually represent a substantial investment by the entity. Entities use historical cost to value property, plant, and equipment. Next. 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