FASB issues statement no. 144, accounting for the impairment or disposal of long-lived assets. (Accounting).* FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). issues Statement no. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, which replaces no. 121--an earlier pronouncement on this topic. The new statement establishes a single accounting model for long-lived assets to be disposed of by sale. Under its provisions, which apply to both continuing and discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , companies must measure long-lived assets at the lower of fair value--minus cost to sell--or the carrying amount. As a result, they should no longer report discontinued operations at net realizable value Net realizable value (NRV) is a commonly used method of evaluating an asset's worth in the field of inventory accounting. NRV is part of GAAP rules that apply to valuing inventory, so as to not overstate or understate the value of inventory goods. or include in them operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. that have not yet occurred. Statement no. 144 is effective for financial statements issued for fiscal years beginning after December 15, 2001. FASB encourages early implementation. |
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