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The Property, Plant, and Equipment Topic includes the following Subtopic:
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The guidance in the Overall Subtopic is presented in the following two Subsections:
a
The General Subsections address the accounting and reporting for property, plant, and equipment, including guidance for accumulated depreciation.
b
The Impairment or Disposal of Long-Lived Assets Subsections retain the pervasive guidance for recognizing and measuring the impairment of long-lived assets and for long-lived assets to be disposed of.
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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.
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The Impairment or Disposal of Long-Lived Assets Subsections provide guidance for:
a
Recognition and measurement of the impairment of long-lived assets to be held and used
b
Measurement of long-lived assets to be disposed of by sale
c
Disclosures about the impairment or disposal of long-lived assets and disposals of individually significant components of an entity.
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For long-lived assets disposed of or classified as held for sale, different presentation and disclosures are required depending on the nature of the disposal. If the long-lived assets are a significant component of an entity, more extensive disclosures are required. Additionally, if the component of an entity meets the definition of discontinued operation in paragraph 205-20-45-1B, an entity shall refer to Subtopic 205-20 for the presentation and disclosure requirements for discontinued operations (see the flowchart in paragraph 360-10-55-18A for an illustration).
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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.
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