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Fasb Case

In: Business and Management

Submitted By duchess
Words 1950
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Part 1:

Asset Group

An asset group is the unit of accounting for a long-lived asset or assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. 05-3 Property, plant, and equipment typically consist of long-lived tangible assets used to create and distribute an entity's products and services and include: * a. Land and land improvements * b. Buildings * c. Machinery and equipment * d. Furniture and fixtures.

05-6 This Subsection provides guidance that focuses on developing estimates of future cash flows used to test for recoverability, including the: * a. Cash flow estimation approach * b. Cash flow estimation period * c. Types of asset-related expenditures that should be considered in developing estimates of future cash flows.

15-4 The guidance in the Impairment or Disposal of Long-Lived Assets Subsections applies to the following transactions and activities: * a. Except as indicated in (b) and the following paragraph, all of the transactions and activities related to recognized long-lived assets of an entity to be held and used or to be disposed of, including:

* 1. Capital leases of lessees * 2. Long-lived assets of lessors subject to operating leases * 3. Proved oil and gas properties that are being accounted for using the successful-efforts method of accounting * 4. Long-term prepaid assets. * b. The following transactions and activities related to assets and liabilities that are considered part of an asset group or a disposal group:

* 1. If a long-lived asset (or assets) is part of a group that includes other assets and...

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