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FASB ASC (360-10-35-21), a long-lived asset that undergoes a change can be tested for recoverability. A decrease in market price could trigger this event. An adverse change could trigger it, and so on. For the case described by Persellin et al. (2014), either of these two events could be used to test the land's recoverability. An impairment event has more than likely occurred.According to 360-10-35-31, a "primary asset of an asset group cannot be land" -- which means that guidelines are going to be different for this process. Moreover, impairment guidelines for assets held for sale versus assets held for use will have to follow the dictate in 360-10 that stipulates that impairment charges must reverse if there is a change in the use of the asset. Thus, if the asset is being used or sold will make a difference.
Fair value can be determined by ASC 820, which states that "fair value is the price to sell an asset or transfer a liability and, therefore, represents an exit price, not an entry price." Thus, the $10 million offer may be used as an exit price and must not reflect the fair value unless it is the exit price in the principal market -- or most advantageous market. It is thus a market-based measurement. Valuation methodologies should be used to assess fair value -- namely, the market approach, the income approach and the cost approach. Additionally, paragraphs...
IN6 discusses measuring value in use and that the "price for bearing the uncertainty inherent in the asset" should be reflected in the calculation of an asset's value in use; IAS 36-11 provides that "the ability of an intangible asset to generate sufficient future economic benefits to recover its carrying amount is usually subject to greater uncertainty before the asset is available for use than after." An impairment loss should be recognized based on the calculations that projected sale of the asset is to be 2.5 million dollars under either of the respective values attributed to the land.
5. No, an impairment should not be made because the sale has not closed and in real estate transactions, until the sale closes nothing is certain -- therefore adjusting the impairment loss at the end of 2015 would be premature. It is better to await the closure of the sale and adjust for that quarter.
6. 360-10-35-22 may be used for property, plant and equipment depreciation estimates and this while 350-30-35-1 through 35-5 may be used to determine the usefulness of the intangible asset, which, in this case is appropriate considering the need to determine future cash flows and associated impairment. Thus…
Accounting standards and IFRS adoption in Cambodia and Thailand The significance of accounting standards Accounting may be considered as a business language through which the statistical results can be acquired which help in analyzing how well the firm is functioning. They give out timely statements of these statistics and help the stakeholders get all the information they need. Accounting is like a separate language which has its own grammar and these outlines
IFRS Human Resource Accounting The United States has a radically different accounting system than virtually every other the countries considered. The United States has their own system known as the general accepted accounting principles (GAAP). Other countries have used this system in the past, such as the UK and Germany, but there has been an international standard that has developed over the course of the last few years and virtually every other
" (2004) Ricol states in relation to the audit area that "...actions were recommended in two primary areas: 1) Reducing threats to auditor independence; and 2) Strengthening audit quality control processes. (Ricol, 2004) In regards to corporate management and governance, it is related in Ricol's speech that the task force called for corporate boards to "demonstrate greater accountability for the information, financial management and internal controls necessary to produce trustworthy information. Sound corporate
Environmental Issues Faced in 21st Century Aviation Reducing Communication and Coordination Tools and Metrics Technology, Operations and Policy Demand Aviation and the Environment Effects on the health Local Air Quality Climate Change Total Climate impacts from aircraft Interdependencies Mobility, Economy and National Security Interactions between Government, Industry and Groups Aviation Greenhouse Gas Emissions Economic Impact SPCC Regulations Local Airport Issues De-icing Fluids A Framework for National Goals Realities and Myths Metrics Recommended Actions Environmental Issues Faced in 21st Century Aviation Environmental awareness in regards to 21st century aviation among the public and politicians has
Some mergers and acquisitions (M&as) did not generate any goodwill because they were accounted for using the pooling-of-interests method. In 1969, Leonard M. Savoie (then Executive Vice President of the AICPA) stated that he expected the then-prevailing accounting pronouncement authority, the Accounting Principles Board (APB), to abolish the pooling of interests method. However, the death-knell for this accounting method was not sounded until 2001 with the issuance of SEAS
Financial Standards Reporting standards for financial transactions have been varied with regard to countries and companies across the globe for many years. This fact has made it difficult for transactions to be reported with any great degree of accuracy. This was especially true in Germany where there was no true German GAAP. What the rest of the world has considered the German GAAP, the GoB, was actually comprised of here say