U.S. GAAP Codification of Accounting Standards

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U.S. GAAP Accounting Standards
Codification Topic 360: Property, Plant and Equipment

Principles of Accounting Intermediate Financial AccountingU.S. GAAP Textbook
IFRS,  IFRS Dictionary IFRS U.S. GAAP Comparison IFRS Texbook
Securities Law Library,  Accounting by Topic Accounting Terms Dictionary

Codification Topic 360
Property, Plant and Equipment

Initial measurement of property, plant and equipment
1. Measured at cost
2. Cost includes (A)
(A) all costs necessary to make the asset ready for intended use
3. During the construction period
--> certain interest costs are also capitalized

Subsequent measurement of property, plant and equipment
1. Depreciation
2. Impairment of long-lived assets
3. Disposal of long-lived assets

Impairment and disposal of long-lived assets
SFAS 144, August 2001
"Accounting for the Impairment or Disposal of Long-Lived Assets"

Classification of long-lived assets
1. Long-lived assets held for sale
2. Long-lived assets to be held and used

Long-lived assets "held for sale"
1. Presented separately in the statement of financial position
2. An asset is not depreciated while classified as "held for sale"
3. Measured at the lower of (B) and (C)
(B) carrying amount
(C) fair value less cost to sell
4. Newly acquired long-lived assets held for sale
--> measured at fair value less cost to sell, at the acquisition date
5. If (C) < (B)
--> a loss is recognized
6. If (B) > (C)
--> a gain is recognized up to "the cumulative loss" previously recognized
7. A gain or loss
--> adjusts the carrying amount of the asset

Discontinued operations
The results of operations of (1) and (2) are
--> reported separately as discontinued operations
(1) component that has been disposed of
(2) component that is classified as "held for sale"

Long-lived assets to be 'held and used" are
--> tested for impairment

Impairment test
1. Step 1: Test for recoverability
--> when there is an indication that carrying amount may not be recoverable
2. Step 2: Measurement of impairment loss
--> if Step 1 shows that carrying amount is not recoverable

Recoverability test
Carrying amount is not recoverable
--> if (D) < (B)
(B) carrying amount
(D) sum of "undiscounted" cash flows from the asset

Impairment loss
1. An asset is impaired when (E) < (B)
2. Impairment loss = (B) - (E)
(B) carrying amount
(E) fair value

Impairment loss is not reversed
1. If an impairment loss is recognized
--> adjusted carrying amount becomes "new cost basis"
2. Impairment loss is "not" reversed
--> when there is a subsequent increase in fair value

International Financial Reporting Standards (IFRS)

   IAS 16: Property, Plant and Equipment
   IAS 36: Impairment of Assts
   IFRS 5: Non-current assets held for sale and discontinued operations

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   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
   Asset group
   Component of an equity
   Disposal group
   Firm purchase commitment
   Integral equipment
   Operating segment
   Reporting unit
Accounting Terms of Codification Topic 360-20
   Cost recovery method
   Deposit method
   Installment method
   Reduced-profit method   

   Other Topics at the Codification 300 
Accounting Standards Codification, ASC, Overview
ASC Codification Topic 305: Cash and Cash Equivalents
ASC Codification Topic 310: Receivables
ASC Codification Topic 320: Investments-Debt and Equity Securities
ASC Codification Topic 323: Investments-Equity Method and Joint Ventures
ASC Codification Topic 325: Investments-Other
ASC Codification Topic 330: Inventory
ASC Codification Topic 340: Other Assets and Deferred Costs
ASC Codification Topic 350: Intangibles-Goodwill and Other
ASC Codification Topic 360: Property, Plant, and Equipment

   U.S. GAAP Codification of Accounting Standards
Accounting Standards Codification, ASC, Overview
ASC Codification 200: Presentation
ASC Codification 300: Assets
ASC Codification 400: Liabilities
ASC Codification 500: Equity
ASC Codification 600: Revenue
ASC Codification 700: Expenses
ASC Codification 800: Broad Transactions
ASC Codification 900: Industry

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