# ASC 360-10-05: Property, Plant, and Equipment — Overall — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/360/10/#05-overview-and-background) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T00:05:38.507Z to 2026-09-10T00:05:38.507Z Record version: sha256:fe07a29d9c15881ed60a8723653007fad9b863cc517fe01dc2e6eb92f810e600 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/360/10/#05-overview-and-background) SEC content: no ##### [360-10-05-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:38.507Z to 2026-09-10T00:05:38.507Z Record version: sha256:c24cc099ffd1439c26719744a25f7dfd6dce425b7f6c30bf5939833c1d611b44 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Property, Plant, and Equipment Topic includes the following Subtopic: 1. a Overall 2. b [Subparagraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/). ##### [360-10-05-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:38.507Z to 2026-09-10T00:05:38.507Z Record version: sha256:6ece0b5000b1e85aa44e08e8184aaa07b53a9da277e477a4d01d7f59a6b8a9da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Overall Subtopic is presented in the following two Subsections: 1. a The General Subsections address the accounting and reporting for property, plant, and equipment, including guidance for accumulated depreciation. 2. b The Impairment or Disposal of Long-Lived Assets Subsections retain the pervasive guidance for recognizing and measuring the [impairment](https://asc.understandingaccounting.org/glossary/i/#impairment "Impairment is the condition that exists when the carrying amount of a long-lived asset (asset group) exceeds its fair value.") of long-lived assets and for long-lived assets to be disposed of. ##### [360-10-05-3](https://asc.understandingaccounting.org/asc/360/10/#360-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:38.507Z to 2026-09-10T00:05:38.507Z Record version: sha256:a68607cd1be58f0eb5fff4722cf26b4b4284c865d675cd6def639579ea79645c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Property, plant, and equipment typically consist of long-lived tangible assets used to create and distribute an entity's products and services and include: 1. a Land and land improvements 2. b Buildings 3. c Machinery and equipment 4. d Furniture and fixtures. ### Impairment or Disposal of Long-Lived Assets ##### [360-10-05-4](https://asc.understandingaccounting.org/asc/360/10/#360-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:38.507Z to 2026-09-10T00:05:38.507Z Record version: sha256:a7bfa957ba7d501d438afc68c5907d6d537d1379ec01e53cb3ce7cadc6c76a44 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Impairment or Disposal of Long-Lived Assets Subsections provide guidance for: 1. a  Recognition and measurement of the [impairment](https://asc.understandingaccounting.org/glossary/i/#impairment "Impairment is the condition that exists when the carrying amount of a long-lived asset (asset group) exceeds its fair value.") of long-lived assets to be held and used 2. b  Measurement of long-lived assets to be disposed of by sale 3. c Disclosures about the impairment or disposal of long-lived assets and disposals of individually significant [components of an entity](https://asc.understandingaccounting.org/glossary/c/#component-of-an-entity "A component of an entity comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity. A component of an entity may be a reportable segment or an operating segment, a reporting unit, a subsidiary, or an asset group."). ##### [360-10-05-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:38.507Z to 2026-09-10T00:05:38.507Z Record version: sha256:112b9511b064a86e358fbe5781436e6d6d7a126940e472da64287584bdfea534 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/205/20/#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](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-18A) for an illustration). ##### [360-10-05-6](https://asc.understandingaccounting.org/asc/360/10/#360-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:38.507Z to 2026-09-10T00:05:38.507Z Record version: sha256:4d79f045ece3781b697cb7fcdbd53aaeef8b195a3e6b8ad8aaaf382c6ab5764b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subsection provides guidance that focuses on developing estimates of future cash flows used to test for recoverability, including the: 1. a Cash flow estimation approach 2. b Cash flow estimation period 3. c Types of asset-related expenditures that should be considered in developing estimates of future cash flows.