# ASC 360-10: Property, Plant, and Equipment — Overall Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/360/10/) 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): 2026-09-10T00:05:35.818Z to 2026-09-10T00:06:33.252Z Record version: sha256:c33572ca646cef8fa463788cb6b58bb4ca0728a662a995ce6524bb2a934cb465 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-10: Property, Plant, and Equipment — Overall ### Machine-generated study aids ```json { "summary": "ASC 360-10 governs the accounting for property, plant, and equipment and, in separate \"Impairment or Disposal of Long-Lived Assets\" Subsections, the impairment testing of long-lived assets held and used and the measurement, presentation, and disclosure of long-lived assets to be disposed of. Cost (including capitalized interest) is allocated to periods through systematic and rational depreciation (360-10-35-4). A held-and-used asset group is written down only if its carrying amount fails an undiscounted cash flow recoverability test, and then only down to fair value (360-10-35-17); held-for-sale assets are measured at the lower of carrying amount or fair value less cost to sell and are not depreciated (360-10-35-43).", "key_points": [ "Depreciation is a systematic and rational allocation of cost less salvage over the asset's estimated useful life—a process of allocation, not valuation (360-10-35-3 through 35-4); annuity methods are unacceptable and tax ACRS lives may not be used unless within a reasonable range of useful life (360-10-35-9, 35-10).", "A held-and-used long-lived asset (asset group) is tested for recoverability only when events or changes in circumstances indicate the carrying amount may not be recoverable (the six indicators in 360-10-35-21); the two-step test compares carrying amount to undiscounted expected future cash flows, and an impairment loss is measured as carrying amount less fair value (360-10-35-17).", "Assets are grouped at the lowest level for which identifiable cash flows are largely independent of other assets and liabilities (360-10-35-23); the impairment loss reduces only long-lived assets, allocated pro rata on relative carrying amounts but not below an individually determinable fair value (360-10-35-28).", "The adjusted carrying amount after impairment becomes the new cost basis, depreciated over the remaining useful life, and restoration of a previously recognized impairment loss is prohibited (360-10-35-20).", "Cash flow estimates cover the remaining useful life of the primary asset of the group (which cannot be land or a nonamortized intangible), exclude interest charges, include expenditures maintaining existing service potential, and exclude capital expenditures that increase service potential (360-10-35-29, 35-31 through 35-34).", "All six criteria in 360-10-45-9 (management commitment, available for immediate sale, active program to locate a buyer, sale probable within one year, active marketing at a reasonable price, unlikely plan changes) must be met for held-for-sale classification; such assets are measured at the lower of carrying amount or fair value less cost to sell, are not depreciated, and subsequent gains are limited to cumulative losses previously recognized (360-10-35-40, 35-43).", "Assets to be disposed of other than by sale (abandonment, exchange at recorded amount, spinoff) remain classified as held and used until disposed of (360-10-45-15), and disclosures about impairments (360-10-50-2) and disposals, including individually significant components (360-10-50-3, 50-3A), are required." ], "categories": [ "Impairment", "Subsequent measurement", "Inventory and PP&E", "Presentation" ], "audience_level": "intermediate", "student_note": "This is the workhorse impairment model for tangible long-lived assets and a classic exam trap: candidates often forget that step one uses UNDISCOUNTED cash flows (so no loss is recorded if they exceed carrying amount, even if fair value is far lower), that the loss is measured against fair value, and that impairments here can never be reversed—unlike the held-for-sale model, where subsequent recoveries can be recognized up to cumulative losses previously recognized.", "related_topics": [ "205-20", "350-20", "410-20", "610-20", "842-20", "835-20" ], "key_concepts": [ "long-lived asset", "asset group", "recoverability test", "undiscounted future cash flows", "held for sale classification", "fair value less cost to sell", "primary asset", "depreciation method" ] } ``` Source downloaded (UTC): 2026-09-10T00:05:35.818Z to 2026-09-10T00:05:35.818Z Record version: sha256:765c7a714467169eb8429d1cac26da1f81ca3f2dd155448e4b0457f9e463bf35 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/360/10/#00-status) SEC content: no ### Status ##### [360-10-00-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:35.818Z to 2026-09-10T00:05:35.818Z Record version: sha256:82242f5eb78a1d73b37c5358ab9be273b8a4164c9b02f7d4c338634630f80dbb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
BusinessAmendedAccounting Standards Update No. 2017-0101/05/2017
BusinessAddedAccounting Standards Update No. 2014-0905/28/2014
CollectionsAddedAccounting Standards Update No. 2019-0303/21/2019
ContractAddedAccounting Standards Update No. 2014-0905/28/2014
CustomerAddedAccounting Standards Update No. 2014-0905/28/2014
Disposal GroupAmendedAccounting Standards Update No. 2014-0804/10/2014
LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Lease TermAddedAccounting Standards Update No. 2016-0202/25/2016
LesseeAddedAccounting Standards Update No. 2016-0202/25/2016
LessorAddedAccounting Standards Update No. 2016-0202/25/2016
Net Realizable ValueAddedAccounting Standards Update No. 2015-1107/22/2015
Nonprofit ActivityAddedAccounting Standards Update No. 2014-0905/28/2014
Not-for-Profit EntityAddedAccounting Standards Update No. 2014-0804/10/2014
Performance ObligationAddedAccounting Standards Update No. 2016-0202/25/2016
Public Business EntityAmendedMaintenance Update 2017-06 (PDF)04/07/2017
Public Business EntityAmendedMaintenance Update 2016-11 (PDF)06/27/2016
Public Business EntityAddedAccounting Standards Update No. 2014-0804/10/2014
RevenueAddedAccounting Standards Update No. 2016-0202/25/2016
Right-of-Use AssetAddedAccounting Standards Update No. 2016-0202/25/2016
Underlying AssetAddedAccounting Standards Update No. 2016-0202/25/2016
360-10-05-1AmendedAccounting Standards Update No. 2016-0202/25/2016
360-10-05-1AmendedAccounting Standards Update No. 2014-0905/28/2014
360-10-05-4AmendedAccounting Standards Update No. 2014-0804/10/2014
360-10-05-5AmendedAccounting Standards Update No. 2014-0804/10/2014
360-10-15-4AmendedAccounting Standards Update No. 2016-0202/25/2016
360-10-15-6AddedAccounting Standards Update No. 2019-0303/21/2019
360-10-30-8AmendedAccounting Standards Update No. 2016-0202/25/2016
360-10-35-7AmendedAccounting Standards Update No. 2014-0905/28/2014
360-10-35-39AmendedAccounting Standards Update No. 2012-0410/01/2012
360-10-35-41AmendedAccounting Standards Update No. 2022-0203/31/2022
360-10-40-1SupersededAccounting Standards Update No. 2014-0905/28/2014
360-10-40-2SupersededAccounting Standards Update No. 2025-1212/17/2025
360-10-40-2AmendedAccounting Standards Update No. 2017-0502/22/2017
360-10-40-2AmendedAccounting Standards Update No. 2016-0202/25/2016
360-10-40-2AmendedAccounting Standards Update No. 2014-0905/28/2014
360-10-40-3SupersededAccounting Standards Update No. 2014-0905/28/2014
360-10-40-3AAmendedAccounting Standards Update No. 2017-0502/22/2017
360-10-40-3BAmendedAccounting Standards Update No. 2017-0502/22/2017
360-10-40-3A through 3CAddedAccounting Standards Update No. 2014-0905/28/2014
360-10-40-5AmendedAccounting Standards Update No. 2017-0502/22/2017
360-10-45-3AmendedAccounting Standards Update No. 2014-0804/10/2014
360-10-45-5AmendedAccounting Standards Update No. 2014-0905/28/2014
360-10-45-5AmendedAccounting Standards Update No. 2014-0804/10/2014
360-10-45-14AmendedAccounting Standards Update No. 2014-0804/10/2014
360-10-45-15AmendedAccounting Standards Update No. 2014-0804/10/2014
360-10-50-2AmendedAccounting Standards Update No. 2024-0311/04/2024
360-10-50-3AmendedAccounting Standards Update No. 2024-0311/04/2024
360-10-50-3AmendedAccounting Standards Update No. 2014-0804/10/2014
360-10-50-3AAmendedAccounting Standards Update No. 2025-1112/08/2025
360-10-50-3AAddedAccounting Standards Update No. 2014-0804/10/2014
360-10-50-4AddedAccounting Standards Update No. 2014-0401/17/2014
360-10-55-18AAddedAccounting Standards Update No. 2014-0804/10/2014
360-10-55-21AmendedAccounting Standards Update No. 2015-1107/22/2015
360-10-55-43AmendedAccounting Standards Update No. 2016-0202/25/2016
360-10-55-50 through 55-54
AddedAccounting Standards Update No. 2012-0410/01/2012
360-10-60-1AmendedAccounting Standards Update No. 2014-0905/28/2014
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. Source downloaded (UTC): 2026-09-10T00:05:41.355Z to 2026-09-10T00:05:41.355Z Record version: sha256:9163de3d09d47a47bdf17ca71d3f38e9b89380133e369bd579257edb3bf74140 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/360/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [360-10-15-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:41.355Z to 2026-09-10T00:05:41.355Z Record version: sha256:4137b11b01f67ec69cda1b156b1f8bce9693242f3d0fe86dcfac02893e8e75e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsection of this Section establishes the pervasive scope for this Subtopic, with specific exceptions noted in the other Subsections of this Section. #### Entities ##### [360-10-15-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:41.355Z to 2026-09-10T00:05:41.355Z Record version: sha256:77647d1022cea5d12607b6d1db4028c8f48a8204b20e6413d409a0037c01885d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities. ### Impairment or Disposal of Long-Lived Assets #### Overall Guidance ##### [360-10-15-3](https://asc.understandingaccounting.org/asc/360/10/#360-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:41.355Z to 2026-09-10T00:05:41.355Z Record version: sha256:f3a8903fd7164bac7d69d3d17a8fb06ec9aa5b50583cf749b32d2d8611663443 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Impairment or Disposal of Long-Lived Assets Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, see paragraph [360-10-15-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-15-1), with specific transaction exceptions noted below. #### Transactions ##### [360-10-15-4](https://asc.understandingaccounting.org/asc/360/10/#360-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:41.355Z to 2026-09-10T00:05:41.355Z Record version: sha256:b4e9fae2e295596dd3ac08d8362abc112c5bda8c3e2a16da3fdbebb6cb200ef7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Impairment or Disposal of Long-Lived Assets Subsections applies to the following transactions and activities: 1. 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. 1 [Right-of-use assets](https://asc.understandingaccounting.org/glossary/r/#right-of-use-asset "An asset that represents a lessee's right to use an underlying asset for the lease term.") of [lessees](https://asc.understandingaccounting.org/glossary/l/#lessee "An entity that enters into a contract to obtain the right to use an underlying asset for a period of time in exchange for consideration.") 2. 2 Long-lived assets of lessors subject to operating leases 3. 3 Proved oil and gas properties that are being accounted for using the successful-efforts method of accounting 4. 4 Long-term prepaid assets. 2. b The following transactions and activities related to assets and liabilities that are considered part of an [asset group](https://asc.understandingaccounting.org/glossary/a/#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.") or a [disposal group](https://asc.understandingaccounting.org/glossary/d/#disposal-group "A disposal group for a long-lived asset or assets to be disposed of by sale or otherwise represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction. A disposal group may include a discontinued operation along with other assets and liabilities that are not part of the discontinued operation."): 1. 1 If a long-lived asset (or assets) is part of a group that includes other assets and liabilities not covered by the Impairment or Disposal of Long-Lived Assets Subsections, the guidance in the Impairment or Disposal of Long-Lived Assets Subsections applies to the group. In those situations, the unit of accounting for the long-lived asset is its group. For a long-lived asset or assets to be held and used, that group is referred to as an asset group. For a long-lived asset or assets to be disposed of by sale or otherwise, that group is referred to as a disposal group. Examples of liabilities included in a disposal group are legal obligations that transfer with a long-lived asset, such as certain environmental obligations, and obligations that, for business reasons, a potential buyer would prefer to settle when assumed as part of a group, such as warranty obligations that relate to an acquired customer base. 2. 2 The guidance in the Impairment or Disposal of Long-Lived Assets Subsections does not change generally accepted accounting principles (GAAP) applicable to those other individual assets (such as accounts receivable and inventory) and liabilities (such as accounts payable, long-term debt, and asset retirement obligations) not covered by the Impairment or Disposal of Long-Lived Assets Subsections that are included in such groups. ##### [360-10-15-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:41.355Z to 2026-09-10T00:05:41.355Z Record version: sha256:0fda5a5cd86bc52760cdd8b7f9a8ec3c103243192f583bf6ed982ccb5d6546f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Impairment or Disposal of Long-Lived Assets Subsections does not apply to the following transactions and activities: 1. a Goodwill 2. b Intangible assets not being amortized that are to be held and used 3. c Servicing assets 4. d Financial instruments, including investments in equity securities accounted for under the cost or equity method 5. e Deferred policy acquisition costs 6. f Deferred tax assets 7. g Unproved oil and gas properties that are being accounted for using the successful-efforts method of accounting 8. h Oil and gas properties that are accounted for using the full-cost method of accounting as prescribed by the Securities and Exchange Commission (SEC) (see Regulation S-X, Rule 4-10, Financial Accounting and Reporting for Oil and Gas Producing Activities Pursuant to the Federal Securities Laws and the Energy Policy and Conservation Act of 1975) 9. i Certain other long-lived assets for which the accounting is prescribed elsewhere in the standards: 1. 1 For guidance on financial reporting in the record and music industry, see Topic 928. 2. 2 For guidance on financial reporting in the broadcasting industry, see Topic 920. 3. 3 For guidance on accounting for the costs of computer software to be sold, leased, or otherwise marketed, see Subtopic 985-20. 4. 4 For guidance on accounting for abandonments and disallowances of plant costs for regulated entities, see Subtopic 980-360. #### Entities Holding Collection Items ##### [360-10-15-6](https://asc.understandingaccounting.org/asc/360/10/#360-10-15-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:41.355Z to 2026-09-10T00:05:41.355Z Record version: sha256:a68401f87d7b5b0e8dde4600cb79555d43aec46bdbcc4b74b40a81c8e75f083a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities that hold [collections](https://asc.understandingaccounting.org/glossary/c/#collections "Works of art, historical treasures, or similar assets that meet all of the following criteria: They are held for public exhibition, education, or research in furtherance of public service rather than financial gain. They are protected, kept unencumbered, cared for, and preserved. They are subject to an organizational policy that requires the use of proceeds from items that are sold to be for the acquisitions of new collection items, the direct care of existing collections, or both. Collections generally are held by museums; botanical gardens; libraries; aquariums; arboretums; historic sites; planetariums; zoos; art galleries; nature, science, and technology centers; and similar educational, research, and public service organizations that have those divisions; however, the definition is not limited to those entities nor does it apply to all items held by those entities.") shall follow the accounting and disclosure requirements in Subtopic 958-360 on not-for-profit entities—property, plant, and equipment. Source downloaded (UTC): 2026-09-10T00:05:48.482Z to 2026-09-10T00:05:48.482Z Record version: sha256:57e8334d07224541abbced38fc219d57f24a9b92ef087be94c935d783a3e83b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-10-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/360/10/#25-recognition) SEC content: no ##### [360-10-25-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:48.482Z to 2026-09-10T00:05:48.482Z Record version: sha256:539375b991ae89a20d87042816b11a3f304d2057167ada8c33c3c09879e60b2f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See the [Impairment or Disposal of Long-Lived Assets Subsection](https://asc.understandingaccounting.org/asc/360/10/#45-other-presentation-matters) of Section 360-10-45 for a discussion of held-for-use and held-for-sale classifications of assets and asset groups. #### Acquisition of the Residual Value in Leased Assets by a Third Party ##### [360-10-25-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:48.482Z to 2026-09-10T00:05:48.482Z Record version: sha256:976394bb52464af9b2be2c2642e5dc81d05ac1703693b06a52e8100e1de519c9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section provides guidance on how a third-party entity shall account for the following: 1. a The acquisition from a lessor of the unconditional right to own and possess, at the end of the lease term, an asset subject to a lease 2. b The acquisition of the right to receive all, or a portion, of the proceeds from the sale of a leased asset at the end of the lease term. ##### [360-10-25-3](https://asc.understandingaccounting.org/asc/360/10/#360-10-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:48.482Z to 2026-09-10T00:05:48.482Z Record version: sha256:dea06f871002d6770b3d60b8b01e8278d83a256a1005fbd95e7ccd5506449198 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At the date the rights in the preceding paragraph are acquired, both transactions involve a right to receive, at the end of the lease term, all, or a portion, of any future benefit to be derived from the leased asset and shall be accounted for as the acquisition of an asset. Both transactions are referred to as the acquisition of an interest in the residual value of a leased asset. ##### [360-10-25-4](https://asc.understandingaccounting.org/asc/360/10/#360-10-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:48.482Z to 2026-09-10T00:05:48.482Z Record version: sha256:e072963866c067f980e7988e9e2d5b31ae58e441e54570b725f001a232299140 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An interest in the residual value of a leased asset shall be recorded as an asset at the date the right is acquired. #### Planned Major Maintenance Activities ##### [360-10-25-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:48.482Z to 2026-09-10T00:05:48.482Z Record version: sha256:4fbb65da88c2c0d566c6228196c8d8197d8a1243c444400de17a481528c67339 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The use of the accrue-in-advance (accrual) method of accounting for planned major maintenance activities is prohibited in annual and interim financial reporting periods. #### Business Combinations ##### [360-10-25-6](https://asc.understandingaccounting.org/asc/360/10/#360-10-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:48.482Z to 2026-09-10T00:05:48.482Z Record version: sha256:b7eebba0b77168f6a4fd2a76689829c648eb94fc9cd7f52a334d484a6662bab4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Section 805-20-25 for general guidance related to the recognition of the acquisition of property, plant, and equipment in a business combination. Source downloaded (UTC): 2026-09-10T00:05:52.138Z to 2026-09-10T00:05:52.138Z Record version: sha256:247b48a2466757a1c84bb75f4f252eadc535b99734f82471248833c0a76fcce7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-10-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/360/10/#30-initial-measurement) SEC content: no #### Historical Cost Including Interest ##### [360-10-30-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:52.138Z to 2026-09-10T00:05:52.138Z Record version: sha256:17f9c0ce68ddf01c8ee9535ba91cb289c8fc58a490a46427e7ec434bb599e2d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [835-20-05-1](https://asc.understandingaccounting.org/asc/835/20/#835-20-05-1) states that the historical cost of acquiring an asset includes the costs necessarily incurred to bring it to the condition and location necessary for its intended use. As indicated in that paragraph, if an asset requires a period of time in which to carry out the activities necessary to bring it to that condition and location, the interest cost incurred during that period as a result of expenditures for the asset is a part of the historical cost of acquiring the asset. ##### [360-10-30-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:52.138Z to 2026-09-10T00:05:52.138Z Record version: sha256:3667b17033377108f7f64ddacfc0dc67cd37380e78200d7cf11a7d5aad9c59ca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See the glossary for a definition of [activities](https://asc.understandingaccounting.org/glossary/a/#activities "The term activities is to be construed broadly. It encompasses physical construction of the asset. In addition, it includes all the steps required to prepare the asset for its intended use. For example, it includes administrative and technical activities during the preconstruction stage, such as the development of plans or the process of obtaining permits from governmental authorities. It also includes activities undertaken after construction has begun in order to overcome unforeseen obstacles, such as technical problems, labor disputes, or litigation.") necessary to bring an asset to the condition and location necessary for its intended use. #### Acquisition of the Residual Value in Leased Assets ##### [360-10-30-3](https://asc.understandingaccounting.org/asc/360/10/#360-10-30-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:52.138Z to 2026-09-10T00:05:52.138Z Record version: sha256:ed0af0fb91101b60159439123e9e3baa068134e1d7d3bcd4d1a65947b94f7c63 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An interest in the residual value of a leased asset recognized under paragraph [360-10-25-4](https://asc.understandingaccounting.org/asc/360/10/#360-10-25-4) shall be measured initially at the amount of cash disbursed, the fair value of other consideration given, and the present value of liabilities assumed. ##### [360-10-30-4](https://asc.understandingaccounting.org/asc/360/10/#360-10-30-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:52.138Z to 2026-09-10T00:05:52.138Z Record version: sha256:3c4b1322f69eb7217faa5ffc29cad6f4240a40f16b54c6d43311a882e9b69f7d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The fair value of the interest in the residual value of the leased asset at the date of the agreement shall be used to measure its cost if that fair value is more clearly evident than the fair value of assets surrendered, services rendered, or liabilities assumed. #### Other Asset Acquisition Concepts ##### [360-10-30-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-30-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:52.138Z to 2026-09-10T00:05:52.138Z Record version: sha256:6cfbdc9af67aea8ec889b6f92b9918653bbf86402a38b76162fdafef131cf2e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following paragraphs contain links to other Subtopics that contain guidance on acquiring property, plant, and equipment under other concepts. The following may not represent a complete list of other locations containing property, plant, and equipment acquisition guidance. ##### [360-10-30-6](https://asc.understandingaccounting.org/asc/360/10/#360-10-30-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:52.138Z to 2026-09-10T00:05:52.138Z Record version: sha256:7bd0270f97efecf48a6350ab847d47d2b592870836d7c5f575bc9c41ee0e43f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Section 805-20-25 for general guidance related to assets acquired in a business combination. ##### [360-10-30-7](https://asc.understandingaccounting.org/asc/360/10/#360-10-30-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:52.138Z to 2026-09-10T00:05:52.138Z Record version: sha256:3531c66a05298c7fcc7f2ec326ef1dba9e31e5f70a6c64905f667afa007a6eee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [845-10-30-1 through 30-10](https://asc.understandingaccounting.org/asc/845/10/#845-10-30-1) for guidance related to assets acquired in a nonmonetary exchange. ##### [360-10-30-8](https://asc.understandingaccounting.org/asc/360/10/#360-10-30-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:52.138Z to 2026-09-10T00:05:52.138Z Record version: sha256:349a587ae75d0e243b5636e5061e952515827fba6ca8e2d9bc6a462e6d5d8508 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Subtopic 842-20 for guidance related to assets acquired under a lease. Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:eccf9622585058558ae591b6fc811d22c15ade9e737b5806b830e1348430018d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-10-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/360/10/#35-subsequent-measurement) SEC content: no ##### [360-10-35-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:621089530b701cb1d626a54d9ccf1c551673b1b24526536be1f38fb19eb95943 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subsection addresses depreciation of property, plant, and equipment and the post acquisition accounting for an interest in the residual value of a leased asset. #### Depreciation ##### [360-10-35-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:85dce47de2b56dec05efa10da37c67c329fde37adb896779db0d5f8cb0795454 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance addresses the concept of depreciation accounting and the various factors to consider in selecting the related periods and methods to be used in such accounting. ##### [360-10-35-3](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:d12b487e4b4be130a55cbf9ca668c84107d9fae0ba08356eceed97d31cd4393b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Depreciation expense in financial statements for an asset shall be determined based on the asset's useful life. ##### [360-10-35-4](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:aff2f9499b4be3ea6ca84b2a765724282e812cf5c38b883a1e93583c1b769f3f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The cost of a productive facility is one of the costs of the services it renders during its useful economic life. Generally accepted accounting principles (GAAP) require that this cost be spread over the expected useful life of the facility in such a way as to allocate it as equitably as possible to the periods during which services are obtained from the use of the facility. This procedure is known as depreciation accounting, a system of accounting which aims to distribute the cost or other basic value of tangible capital assets, less salvage (if any), over the estimated useful life of the unit (which may be a group of assets) in a systematic and rational manner. It is a process of allocation, not of valuation. ##### [360-10-35-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:cc1d115922e6791bd5f1da3e7a9cc7941a21ffacd771ebda0332fcdb15471d39 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [360-10-35-20](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-20) for a discussion of depreciation of a new cost basis after recognition of an [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.") loss. ##### [360-10-35-6](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:bd2e110cd5ba604ff48ecffbdd652032eae7f8d2108429a4a8f468924b20eaab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [360-10-35-43](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-43) for a discussion of cessation of depreciation on long-lived assets classified as held for sale. ##### [360-10-35-7](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:625ca0072f399421765c27f58c1c2c99272212c9669aa91c7eb26e3bfbb97a2a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The declining-balance method is an example of one of the methods that meet the requirements of being systematic and rational. If the expected productivity of the asset or ability of the asset to generate revenue is relatively greater during the earlier years of its life, or maintenance charges tend to increase during later years, the declining-balance method may provide the most satisfactory allocation of cost. That conclusion also applies to other methods, including the sum-of-the-years'-digits method, that produce substantially similar results. ##### [360-10-35-8](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:2469cae14fac8c3545077f797856d321b341b6934efd29a29e82518484928391 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In practice, experience regarding loss or damage to depreciable assets is in some cases one of the factors considered in estimating the depreciable lives of a group of depreciable assets, along with such other factors as wear and tear, obsolescence, and maintenance and replacement policies. ##### [360-10-35-9](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:60453f3399a666008e6a0358903c09c615111e99cfca439b0e88f0e31eacb1f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the number of years specified by the Accelerated Cost Recovery System of the Internal Revenue Service (IRS) for recovery deductions for an asset does not fall within a reasonable range of the asset's useful life, the recovery deductions shall not be used as depreciation expense for financial reporting. ##### [360-10-35-10](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:919e72d0b0f7bb7f43d88115bd21e210709a74b425c91c409addbb72eef127f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Annuity methods of depreciation are not acceptable for entities in general. ##### [360-10-35-11](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:2e625dc2abd1a0a8c221dc687e677301ae941a149ae5b0a9ab5a8ad7d5602a72 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [250-10-45-17 through 45-20](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-17) for guidance on the accounting and presentation of changes in methods of depreciation. ##### [360-10-35-12](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:8d91c32e2621e206d98ac4b939930537df6fa1aad6dace5b0e7438b37304f9ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). #### Adjusting the Residual Value in Leased Assets by a Third Party ##### [360-10-35-13](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:9becdbe6ed7add09e2751d7e9fdec3407a990852afc0fca86d1a25f7ee0182b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following paragraph provides guidance on how an entity acquiring an interest in the residual value of a leased asset shall account for that asset during the lease term. ##### [360-10-35-14](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:db96dd386ee4e772bad7313bf4769fb5902a9d5a6f4af052f5d0c79443360cf7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity acquiring an interest in the residual value of any leased asset, irrespective of the classification of the related lease by the lessor, shall not recognize increases to the asset's estimated value over the remaining term of the related lease, and the asset shall be reported at no more than its acquisition cost until sale or disposition. If it is subsequently determined that the fair value of the residual value of a leased asset has declined below the carrying amount of the acquired interest and that decline is other than temporary, the asset shall be written down to fair value, and the amount of the write-down shall be recognized as a loss. That fair value becomes the asset's new carrying amount, and the asset shall not be increased for any subsequent increase in its fair value before its sale or disposition. ### Impairment or Disposal of Long-Lived Assets ##### [360-10-35-15](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:1978446db34e147931806b2ea4d7b1914ff1ea79aa9a4861a09df1bb55f03bef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. There are unique requirements of accounting for 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.") or disposal of long-lived assets to be held and used or to be disposed of. Although this guidance deals with matters which may lead to the ultimate disposition of assets, it is included in this Subsection because it describes the measurement and classification of assets to be held and used and assets held for disposal before actual disposition and derecognition. See the [Impairment or Disposal of Long-Lived Assets Subsection](https://asc.understandingaccounting.org/asc/360/10/#40-derecognition) of Section 360-10-40 for a discussion of assets or asset groups for which disposition has taken place in an exchange or distribution to owners. #### Long-Lived Assets Classified as Held and Used ##### [360-10-35-16](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:c997887897a5251c32354e44a0cfc9ff9a7d74a4e19218d9844971b2670bdbba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance addresses how long-lived assets or asset groups that are intended to be held and used in an entity's business shall be reviewed for impairment. ##### [360-10-35-17](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:46adbc193dd5463fc9566cef41de6171b7af6f289621ec66887b6e09a514551b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An impairment loss shall be recognized only if the carrying amount of a long-lived asset ([asset group](https://asc.understandingaccounting.org/glossary/a/#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.")) is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset (asset group) is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group). That assessment shall be based on the carrying amount of the asset (asset group) at the date it is tested for recoverability, whether in use (see paragraph [360-10-35-33](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-33)) or under development (see paragraph [360-10-35-34](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-34)). An impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset (asset group) exceeds its fair value. ##### [360-10-35-18](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:03691bcb3ad53145f152de2cf69c78222ed8892b143c6657856b490951a9142a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In applying the provisions of this Subtopic, the carrying amount of the asset being tested for impairment shall include amounts of capitalized asset retirement costs. Estimated future cash flows related to the liability for an asset retirement obligation that has been recognized in the financial statements shall be excluded from both of the following: 1. a  The undiscounted cash flows used to test the asset for recoverability 2. b The discounted cash flows used to measure the asset's fair value. ##### [360-10-35-19](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-19) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:697f682c7180a9f27e3ebe5221128b0624317fb6b57e2f20410950e1645f8253 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the fair value of the asset is based on a quoted market price and that price considers the costs that will be incurred in retiring that asset, the quoted market price shall be increased by the fair value of the asset retirement obligation for purposes of measuring impairment. ##### [360-10-35-20](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-20) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:49beb6af9bf3bbbf11027c8d90b863a9092ae832323eb5bfee8fd48a31fd31e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an impairment loss is recognized, the adjusted carrying amount of a long-lived asset shall be its new cost basis. For a depreciable long-lived asset, the new cost basis shall be depreciated (amortized) over the remaining useful life of that asset. Restoration of a previously recognized impairment loss is prohibited. ##### [360-10-35-21](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-21) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:e6f8b04969e90212f77c346ff81de19b5ac7e8103ab2b7c69b3796195c87311d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A long-lived asset (asset group) shall be tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The following are examples of such events or changes in circumstances: 1. a A significant decrease in the market price of a long-lived asset (asset group) 2. b A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition 3. c A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator 4. d An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group) 5. e A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group) 6. f A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The term _more likely than not_ refers to a level of likelihood that is more than 50 percent. ##### [360-10-35-22](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-22) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:b827095f6ac43efa29634d5c0cfa7da63ed056ea685e002918c6fa557ce013d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a long-lived asset (asset group) is tested for recoverability, it also may be necessary to review depreciation estimates and method as required by Topic 250 or the amortization period as required by Topic 350. Paragraphs [250-10-45-17 through 45-20](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-17) and [250-10-50-4](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-4) address the accounting for changes in estimates, including changes in the method of depreciation, amortization, and depletion. Paragraphs [350-30-35-1 through 35-5](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-1) address the determination of the useful life of an intangible asset. Any revision to the remaining useful life of a long-lived asset resulting from that review also shall be considered in developing estimates of future cash flows used to test the asset (asset group) for recoverability (see paragraphs [360-10-35-31 through 35-32](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-31) ). However, any change in the accounting method for the asset resulting from that review shall be made only after applying this Subtopic. ##### [360-10-35-23](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-23) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:136b8a5fe2e7daba1b9a5554f2308314b4d231f4634d15c73ef7d848df4dc7e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of recognition and measurement of an impairment loss, a long-lived asset or assets shall be grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. However, an impairment loss, if any, that results from applying this Subtopic shall reduce only the carrying amount of a long-lived asset or assets of the group in accordance with paragraph [360-10-35-28](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-28). ##### [360-10-35-24](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-24) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:1a8022f59d61f536960326fab8e23112d569aec9e792f48da79e81061c7c33e1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In limited circumstances, a long-lived asset (for example, a corporate headquarters facility) may not have identifiable cash flows that are largely independent of the cash flows of other assets and liabilities and of other asset groups. In those circumstances, the asset group for that long-lived asset shall include all assets and liabilities of the entity. ##### [360-10-35-25](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-25) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:ccc3bdd6470eba0e729b07fb299a5482ee7816ab5b2c3f858a97814677e2e7ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In limited circumstances, an asset group will include all assets and liabilities of the entity. For example, the cost of operating assets such as corporate headquarters or centralized research facilities may be funded by revenue-producing activities at lower levels of the entity. Accordingly, in limited circumstances, the lowest level of identifiable cash flows that are largely independent of other asset groups may be the entity level. See Example 4 (paragraph [360-10-55-35](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-35)). ##### [360-10-35-26](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-26) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:3b7664c089f1acd261f4f753f92d540d0513c58851aff8e84d717f8908239f88 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Goodwill shall be included in an asset group to be tested for impairment under this Subtopic only if the asset group is or includes a reporting unit. Goodwill shall not be included in a lower-level asset group that includes only part of a reporting unit. Estimates of future cash flows used to test that lower-level asset group for recoverability shall not be adjusted for the effect of excluding goodwill from the group. The term _reporting unit_ is defined in Topic 350 as the same level as or one level below an [operating segment](https://asc.understandingaccounting.org/glossary/o/#operating-segment "A component of a public entity. See Section 280-10-50 for additional guidance on the definition of an operating segment."). That Topic requires that goodwill be tested for impairment at the reporting unit level. ##### [360-10-35-27](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-27) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:796cee6a442d985975fe03cec8a89f98e7ddb89e13f7374c57f42b8af383671d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other than goodwill, the carrying amounts of any assets (such as accounts receivable and inventory) and liabilities (such as accounts payable, long-term debt, and asset retirement obligations) not covered by this Subtopic that are included in an asset group shall be adjusted in accordance with other applicable generally accepted accounting principles (GAAP) before testing the asset group for recoverability. Paragraph [350-20-35-31](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-31) requires that goodwill be tested for impairment only after the carrying amounts of the other assets of the reporting unit, including the long-lived assets covered by this Subtopic, have been tested for impairment under other applicable accounting guidance. ##### [360-10-35-28](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-28) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:b7fa53ec5e28afbdadbb424627c0ad4da6c3698ffedaec2a45c78494ffd4eace Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An impairment loss for an asset group shall reduce only the carrying amounts of a long-lived asset or assets of the group. The loss shall be allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long-lived asset of the group shall not reduce the carrying amount of that asset below its fair value whenever that fair value is determinable without undue cost and effort. See Example 1 (paragraph [360-10-55-20](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-20)) for an illustration of this guidance. ##### [360-10-35-29](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-29) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:22c78b86df552e1ab8452b8da871f44be2ef38ab02e3bbb5da5728afc280eb8d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Estimates of future cash flows used to test the recoverability of a long-lived asset (asset group) shall include only the future cash flows (cash inflows less associated cash outflows) that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the asset (asset group). Those estimates shall exclude interest charges that will be recognized as an expense when incurred. ##### [360-10-35-30](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-30) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:04b574a306cba1a4a3b3f6b29e40fbfb5d6e5ec7abd2656a337c2208738cf01c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Estimates of future cash flows used to test the recoverability of a long-lived asset (asset group) shall incorporate the entity's own assumptions about its use of the asset (asset group) and shall consider all available evidence. The assumptions used in developing those estimates shall be reasonable in relation to the assumptions used in developing other information used by the entity for comparable periods, such as internal budgets and projections, accruals related to incentive compensation plans, or information communicated to others. However, if alternative courses of action to recover the carrying amount of a long-lived asset (asset group) are under consideration or if a range is estimated for the amount of possible future cash flows associated with the likely course of action, the likelihood of those possible outcomes shall be considered. A probability-weighted approach may be useful in considering the likelihood of those possible outcomes. See Example 2 (paragraph [360-10-55-23](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-23)) for an illustration of this guidance. ##### [360-10-35-31](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-31) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:42ca5f44cc4fa0555c1d92503391d80736e3d5130316aee089ed0694efaa011b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Estimates of future cash flows used to test the recoverability of a long-lived asset (asset group) shall be made for the remaining useful life of the asset (asset group) to the entity. The remaining useful life of an asset group shall be based on the remaining useful life of the primary asset of the group. For purposes of this Subtopic, the primary asset is the principal long-lived tangible asset being depreciated or intangible asset being amortized that is the most significant component asset from which the asset group derives its cash-flow-generating capacity. The primary asset of an asset group therefore cannot be land or an intangible asset not being amortized. ##### [360-10-35-32](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-32) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:fac6cc615387613f353ebff792e94107a9b782f6e1bb154d62cee3e7a5d9c4ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Factors that an entity generally shall consider in determining whether a long-lived asset is the primary asset of an asset group include the following: 1. a Whether other assets of the group would have been acquired by the entity without the asset 2. b The level of investment that would be required to replace the asset 3. c The remaining useful life of the asset relative to other assets of the group. If the primary asset is not the asset of the group with the longest remaining useful life, estimates of future cash flows for the group shall assume the sale of the group at the end of the remaining useful life of the primary asset. ##### [360-10-35-33](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-33) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:6d50dda9c41e44748da8a8ae42e7c2bec4bf5d0c449300ddd63ee679dc66fa96 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Estimates of future cash flows used to test the recoverability of a long-lived asset (asset group) that is in use, including a long-lived asset (asset group) for which development is substantially complete, shall be based on the existing service potential of the asset (asset group) at the date it is tested. The service potential of a long-lived asset (asset group) encompasses its remaining useful life, cash-flow-generating capacity, and for tangible assets, physical output capacity. Those estimates shall include cash flows associated with future expenditures necessary to maintain the existing service potential of a long-lived asset (asset group), including those that replace the service potential of component parts of a long-lived asset (for example, the roof of a building) and component assets other than the primary asset of an asset group. Those estimates shall exclude cash flows associated with future capital expenditures that would increase the service potential of a long-lived asset (asset group). ##### [360-10-35-34](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-34) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:3c948525718535b62a3c01c84ee14c941c7805ea91a81cc4c754b4a068db8a6a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Estimates of future cash flows used to test the recoverability of a long-lived asset (asset group) that is under development shall be based on the expected service potential of the asset (group) when development is substantially complete. Those estimates shall include cash flows associated with all future expenditures necessary to develop a long-lived asset (asset group), including interest payments that will be capitalized as part of the cost of the asset (asset group). Subtopic 835-20 requires the capitalization period to end when the asset is substantially complete and ready for its intended use. ##### [360-10-35-35](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-35) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:7976734c51bb3ae28a473a980600e29021dcef00aaab258f5f054a4774ed7551 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a long-lived asset that is under development is part of an asset group that is in use, estimates of future cash flows used to test the recoverability of that group shall include the cash flows associated with future expenditures necessary to maintain the existing service potential of the group (see paragraph [360-10-35-33](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-33)) as well as the cash flows associated with all future expenditures necessary to substantially complete the asset that is under development (see the preceding paragraph). See Example 3 (paragraph [360-10-55-33](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-33)). See also paragraphs [360-10-55-7 through 55-18](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-7) for considerations of site restoration and environmental exit costs. ##### [360-10-35-36](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-36) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:6db8ac560bef5e2015b169bf712fd4017061ea8640af25fa7081c28eb383fed9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For long-lived assets (asset groups) that have uncertainties both in timing and amount, an expected present value technique will often be the appropriate technique with which to estimate fair value. #### Long-Lived Assets Classified as Held for Sale ##### [360-10-35-37](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-37) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:d112aea18e04cfa3c75cdb0ec7d8696e7b9159a23860f2082ce6dea3ccca0cf1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance addresses the accounting for expected disposal losses for long-lived assets and asset groups that are classified as held for sale but have not yet been sold. See paragraphs [360-10-45-9 through 45-11](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) for the initial criteria to be met for classification as held for sale. ##### [360-10-35-38](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-38) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:71d119fbdd1b98a715a1a8a0d1f8a8b1372687bdf051d0342c9e888d3b02b9a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs to sell are the incremental direct costs to transact a sale, that is, the costs that result directly from and are essential to a sale transaction and that would not have been incurred by the entity had the decision to sell not been made. Those costs include broker commissions, legal and title transfer fees, and closing costs that must be incurred before legal title can be transferred. Those costs exclude expected future losses associated with the operations of a long-lived asset ([disposal group](https://asc.understandingaccounting.org/glossary/d/#disposal-group "A disposal group for a long-lived asset or assets to be disposed of by sale or otherwise represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction. A disposal group may include a discontinued operation along with other assets and liabilities that are not part of the discontinued operation.")) while it is classified as held for sale. Expected future operating losses that marketplace participants would not similarly consider in their estimates of the fair value less cost to sell of a long-lived asset (disposal group) classified as held for sale shall not be indirectly recognized as part of an expected loss on the sale by reducing the carrying amount of the asset (disposal group) to an amount less than its current fair value less cost to sell. If the sale is expected to occur beyond one year as permitted in limited situations by paragraph [360-10-45-11](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-11), the cost to sell shall be discounted. ##### [360-10-35-39](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-39) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:24c72590724a336572e977b834d6fc233028e8aaf1062c2b7c21ce143aa5e450 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The carrying amounts of any assets that are not covered by this Subtopic, including goodwill, that are included in a disposal group classified as held for sale shall be adjusted in accordance with other applicable GAAP prior to measuring the fair value less cost to sell of the disposal group. Paragraphs [350-20-40-1 through 40-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-1) provide guidance for allocating goodwill to a lower-level asset group to be disposed of that is part of a reporting unit and that constitutes a business. Goodwill is not included in a lower-level asset group to be disposed of that is part of a reporting unit if it does not constitute a business. ##### [360-10-35-40](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-40) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:693d43f897b246fba9dcf46566e74a807a197070e1a4810bc9ba64a62f7a0c7f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A loss shall be recognized for any initial or subsequent write-down to fair value less cost to sell. A gain shall be recognized for any subsequent increase in fair value less cost to sell, but not in excess of the cumulative loss previously recognized (for a write-down to fair value less cost to sell). The loss or gain shall adjust only the carrying amount of a long-lived asset, whether classified as held for sale individually or as part of a disposal group. ##### [360-10-35-41](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-41) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:d15df5385d299ceb29bbc3002c31cbd291ac83f86bf4ccf1b85b4fd83d075749 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [310-20-35-12D](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-12D) and [310-20-40-12](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-12) for guidance related to determination of cost basis for foreclosed assets under Subtopic 310-20 and the measurement of cumulative losses previously recognized under paragraph [360-10-35-40](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-40). ##### [360-10-35-42](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-42) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:567c1d89b6942c99979dbd00d1e676344733b347ca9a0b8a82e170607afb9150 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [830-30-45-13 through 45-15](https://asc.understandingaccounting.org/asc/830/30/#830-30-45-13) for guidance regarding the application of Topic 830 to an investment being evaluated for impairment that will be disposed of. ##### [360-10-35-43](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-43) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:55bad1167547623564eb0c4a99c2fac9e8d3f00518f9fb2cea2422974bfc3ab0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A long-lived asset (disposal group) classified as held for sale shall be measured at the lower of its carrying amount or fair value less cost to sell. If the asset (disposal group) is newly acquired, the carrying amount of the asset (disposal group) shall be established based on its fair value less cost to sell at the acquisition date. A long-lived asset shall not be depreciated (amortized) while it is classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale shall continue to be accrued. ##### [360-10-35-44](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-44) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:1eab0f33f298d32336723e4e6c5d3f6e74d3654eaa4786e6e3da21276be385fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If circumstances arise that previously were considered unlikely and, as a result, an entity decides not to sell a long-lived asset (disposal group) previously classified as held for sale, the asset (disposal group) shall be reclassified as held and used. A long-lived asset that is reclassified shall be measured individually at the lower of the following: 1. a Its carrying amount before the asset (disposal group) was classified as held for sale, adjusted for any depreciation (amortization) expense that would have been recognized had the asset (disposal group) been continuously classified as held and used 2. b Its fair value at the date of the subsequent decision not to sell. ##### [360-10-35-45](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-45) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:0cdc32c96c1be8fd8b0bc8084b369ed104968b9e81f3d20a217cebc3bc26e1a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity removes an individual asset or liability from a disposal group previously classified as held for sale, the remaining assets and liabilities of the disposal group to be sold shall continue to be measured as a group only if the criteria in paragraph [360-10-45-9](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) are met. Otherwise, the remaining long-lived assets of the group shall be measured individually at the lower of their carrying amounts or fair values less cost to sell at that date. #### Long-Lived Assets to Be Disposed of Other than by Sale ##### [360-10-35-46](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-46) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:5e628bd5a9832d86f0c004a0e9f1437566b683c5a764e1721bd5c4dcc0022d37 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance addresses the accounting for impairment of long-lived assets and asset groups that are intended to be disposed of by abandonment. ##### [360-10-35-47](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-47) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:6d48e36da2fd7fd8fcbf60df49c375c967ae94bdf2aeb9a97bfb8d8aa54b46c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of this Subtopic, a long-lived asset to be abandoned is disposed of when it ceases to be used. If an entity commits to a plan to abandon a long-lived asset before the end of its previously estimated useful life, depreciation estimates shall be revised in accordance with paragraphs [250-10-45-17 through 45-20](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-17) and [250-10-50-4](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-4) to reflect the use of the asset over its shortened useful life (see paragraph [360-10-35-22](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-22)). ##### [360-10-35-48](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-48) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:cbe89b43785d2deed4fbec0625e40e8547b90b8771a5cb5b6dcac8c091f93074 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because the continued use of a long-lived asset demonstrates the presence of service potential, only in unusual situations would the fair value of a long-lived asset to be abandoned be zero while it is being used. When a long-lived asset ceases to be used, the carrying amount of the asset should equal its salvage value, if any. The salvage value of the asset shall not be reduced to an amount less than zero. ##### [360-10-35-49](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-49) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:55.674Z to 2026-09-10T00:05:55.674Z Record version: sha256:a6df9f99aced0a0d3d8f71f0299e81d4270fa67b755fc189f1cdaa3c07e48e45 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A long-lived asset that has been temporarily idled shall not be accounted for as if abandoned. Source downloaded (UTC): 2026-09-10T00:05:57.844Z to 2026-09-10T00:05:57.844Z Record version: sha256:10371bc078a18745ffdb06f0316e36153f48e6851fd10f80a08e92de26f17d7a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-10-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/360/10/#40-derecognition) SEC content: no ##### [360-10-40-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:57.844Z to 2026-09-10T00:05:57.844Z Record version: sha256:baabf1a98ce4cbc5ba194c26f00278a024174d2fae086838b256971a6fbb7b0e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). #### Sale of Leased Property ##### [360-10-40-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-2) Pending content: yes Source downloaded (UTC): 2026-09-10T00:05:57.844Z to 2026-09-10T00:05:57.844Z Record version: sha256:81e55dde14b048355a513e087a95bbc8e7bb65a6b5fb4cfa15044c5572d92e5a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [840-20-40-5](https://asc.understandingaccounting.org/asc/840/20/#840-20-40-5) states that if a sale to a third party of property subject to an operating lease (or of property that is leased by or intended to be leased by the third-party purchaser to another party) is not to be recorded as a sale because the entity has not transferred control over the promised asset to the third party in accordance with paragraph [606-10-25-30](https://asc.understandingaccounting.org/asc/606/10/#606-10-25-30), the transaction shall be accounted for as a borrowing. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)
Editor's Note: Paragraph 360-10-40-2 will be superseded upon transition, together with its heading:
> Sale of Leased Property
[Paragraph superseded by Accounting Standards Update No. 2025-12](https://asc.understandingaccounting.org/updates/asu-2025-12/). ##### [360-10-40-3](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:57.844Z to 2026-09-10T00:05:57.844Z Record version: sha256:4690fa0f28df0dda8a96cc609b1a72680e53126b1b7f212046a13ee0c75c8b08 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). #### Transfer or Sale of Property, Plant, and Equipment ##### [360-10-40-3A](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-3A) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:57.844Z to 2026-09-10T00:05:57.844Z Record version: sha256:f2e0b703495aa8e87173c7aca3034614ed32535b78ce4a0e4224de98b5de6c27 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall account for the derecognition of a nonfinancial asset, including an in substance nonfinancial asset and an asset subject to a lease , within the scope of this Topic in accordance with Subtopic 610-20 on gains and losses from the derecognition of nonfinancial assets, unless a scope exception from Subtopic 610-20 applies. For example, the derecognition of a nonfinancial asset in a [contract](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with a [customer](https://asc.understandingaccounting.org/glossary/c/#customer "A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration.") shall be accounted for in accordance with Topic 606 on [revenue](https://asc.understandingaccounting.org/glossary/r/#revenue "Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.") from contracts with customers. ##### [360-10-40-3B](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-3B) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:57.844Z to 2026-09-10T00:05:57.844Z Record version: sha256:f52f6952a31fb795adc11a20b58889ab35313f6b79c7f945e075cbfa19d9d243 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall account for the derecognition of a subsidiary or group of assets that is either a [business](https://asc.understandingaccounting.org/glossary/b/#business "Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business.") or [nonprofit activity](https://asc.understandingaccounting.org/glossary/n/#nonprofit-activity "An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing benefits, other than goods or services at a profit or profit equivalent, as a fulfillment of an entity's purpose or mission (for example, goods or services to beneficiaries, customers, or members). As with a not-for-profit entity, a nonprofit activity possesses characteristics that distinguish it from a business or a for-profit business entity.") in accordance with the derecognition guidance in Subtopic 810-10. ##### [360-10-40-3C](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-3C) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:57.844Z to 2026-09-10T00:05:57.844Z Record version: sha256:8c91610f9091321bc9a1601b205ba584bf64434069202414d1177c9548b743ba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity transfers a nonfinancial asset in accordance with paragraph [360-10-40-3A](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-3A), and the contract does not meet all of the criteria in paragraph [606-10-25-1](https://asc.understandingaccounting.org/asc/606/10/#606-10-25-1), the entity shall not derecognize the nonfinancial asset and shall follow the guidance in paragraphs [606-10-25-6 through 25-8](https://asc.understandingaccounting.org/asc/606/10/#606-10-25-6) to determine if and when the contract subsequently meets all the criteria in paragraph [606-10-25-1](https://asc.understandingaccounting.org/asc/606/10/#606-10-25-1). Until all the criteria in paragraph [606-10-25-1](https://asc.understandingaccounting.org/asc/606/10/#606-10-25-1) are met, the entity shall continue to do all of the following: 1. a Report the nonfinancial asset in its financial statements 2. b Recognize depreciation expense as a period cost unless the assets have been classified as held for sale in accordance with paragraphs [360-10-45-9 through 45-10](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) 3. c Apply the impairment guidance in Section 360-10-35. ### Impairment or Disposal of Long-Lived Assets #### Long-Lived Assets to Be Exchanged or to Be Distributed to Owners in a Spinoff ##### [360-10-40-4](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:57.844Z to 2026-09-10T00:05:57.844Z Record version: sha256:801baed88d5df1e97265ab862bebcd91b5c87ec1b1610da2291bd49c73376058 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of this Subtopic, a long-lived asset to be disposed of in an exchange measured based on the recorded amount of the nonmonetary asset relinquished or to be distributed to owners in a spinoff is disposed of when it is exchanged or distributed. If the asset ([asset group](https://asc.understandingaccounting.org/glossary/a/#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.")) is tested for recoverability while it is classified as held and used, the estimates of future cash flows used in that test shall be based on the use of the asset for its remaining useful life, assuming that the disposal transaction will not occur. In such a case, an undiscounted cash flows recoverability test shall apply prior to the disposal date. In addition to any [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.") losses required to be recognized while the asset is classified as held and used, an impairment loss, if any, shall be recognized when the asset is disposed of if the carrying amount of the asset ([disposal group](https://asc.understandingaccounting.org/glossary/d/#disposal-group "A disposal group for a long-lived asset or assets to be disposed of by sale or otherwise represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction. A disposal group may include a discontinued operation along with other assets and liabilities that are not part of the discontinued operation.")) exceeds its fair value. The provisions of this Section apply to nonmonetary exchanges that are not recorded at fair value under the provisions of Topic 845. #### Recognition of Gain or Loss from Sale ##### [360-10-40-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:57.844Z to 2026-09-10T00:05:57.844Z Record version: sha256:3f2ca14bb0cdaca7e12c99be100998b389f47a3aff397abf96dec9eb0c4884c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A gain or loss not previously recognized that results from the sale of a long-lived asset (disposal group) shall be recognized when the long-lived asset (disposal group) is derecognized in accordance with applicable Topics (for example, Topic 610 on other income, Topic 810 on consolidation, or Topic 860 on transfers and servicing). #### Long-Lived Assets to Be Abandoned ##### [360-10-40-6](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:57.844Z to 2026-09-10T00:05:57.844Z Record version: sha256:96248d75c187102ef4ad930f8a386dc77a91afda320caf3456bc0d9a75791db3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [360-10-35-47 through 35-48](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-47) for guidance related to the disposition of an asset upon its abandonment. Source downloaded (UTC): 2026-09-10T00:06:01.538Z to 2026-09-10T00:06:01.538Z Record version: sha256:3bfbe6dc0d2e817e1c796a8ab090e7bd077e64ca1b7ae26e6c23989ef45c47c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/360/10/#45-other-presentation-matters) SEC content: no #### Planned Major Maintenance Activities ##### [360-10-45-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:01.538Z to 2026-09-10T00:06:01.538Z Record version: sha256:add05070cd26e4bcb5a73baf401482dee45cbc468cd8786c38dccdf488ec17ba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall apply the same method of accounting for planned major maintenance activities in annual and interim financial reporting periods. ### Impairment or Disposal of Long-Lived Assets ##### [360-10-45-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:01.538Z to 2026-09-10T00:06:01.538Z Record version: sha256:61058109ebf5e0b1bf53d234bb64cd8428c50658a8b04d061f7ce1a10051d8ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subsection presents guidance for the presentation of [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.") or disposal of long-lived assets or asset groups that are classified as: 1. a Held and used 2. b Held for sale 3. c To be disposed of other than by sale. ##### [360-10-45-3](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:01.538Z to 2026-09-10T00:06:01.538Z Record version: sha256:07bdf2fe7e59b0315e433e04f415ddf9af36cac73c023ebfb76949de3c27a294 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [205-20-45-1A through 45-11](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1A) for guidance on the presentation of operations of a discontinued operation. #### Long-Lived Assets Classified as Held and Used ##### [360-10-45-4](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:01.538Z to 2026-09-10T00:06:01.538Z Record version: sha256:b59e9a23cc19d191c5bcfa7b13ab1dcfb15dd86aaa8834d3d46db414f7c496d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An impairment loss recognized for a long-lived asset ([asset group](https://asc.understandingaccounting.org/glossary/a/#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.")) to be held and used shall be included in income from continuing operations before income taxes in the income statement of a business entity. If a subtotal such as income from operations is presented, it shall include the amount of that loss. ##### [360-10-45-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:01.538Z to 2026-09-10T00:06:01.538Z Record version: sha256:c5c4707daf1a4480a5241567ae06c40c344edcb4d0773dca97c2053a73321e28 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A gain or loss recognized (see Subtopic 610-20 on the sale or transfer of a nonfinancial asset) on the sale of a long-lived asset ([disposal group](https://asc.understandingaccounting.org/glossary/d/#disposal-group "A disposal group for a long-lived asset or assets to be disposed of by sale or otherwise represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction. A disposal group may include a discontinued operation along with other assets and liabilities that are not part of the discontinued operation.")) that is not a discontinued operation shall be included in income from continuing operations before income taxes in the income statement of a business entity. If a subtotal such as income from operations is presented, it shall include the amounts of those gains or losses. ##### [360-10-45-6](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:01.538Z to 2026-09-10T00:06:01.538Z Record version: sha256:d992f3aeb5a66176a63c3401aaf2af0f9521313095f5dae2ad5da3c6a9c266c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If circumstances arise that previously were considered unlikely and, as a result, an entity decides not to sell a long-lived asset (disposal group) previously classified as held for sale, the asset (disposal group) shall be reclassified as held and used. ##### [360-10-45-7](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:01.538Z to 2026-09-10T00:06:01.538Z Record version: sha256:2aeba2d6759329f84f0aaf04f4751f62f7557979aba46228da336c3c1d0d5438 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any required adjustment to the carrying amount of a long-lived asset that is reclassified as held and used shall be included in income from continuing operations in the period of the subsequent decision not to sell. That adjustment shall be reported in the same income statement caption used to report a loss, if any, recognized in accordance with paragraph [360-10-45-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-5). If a component of an entity is reclassified as held and used, the results of operations of the component previously reported in discontinued operations in accordance with paragraph [205-20-45-3](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-3) shall be reclassified and included in income from continuing operations for all periods presented. ##### [360-10-45-8](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:01.538Z to 2026-09-10T00:06:01.538Z Record version: sha256:f81477663b9e73aabb2474197eff05434cb11c53220ee4532769597428c8feb8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any long-lived assets that will not be sold shall be reclassified as held and used in accordance with paragraph [360-10-35-44](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-44). #### Long-Lived Assets Classified as Held for Sale ##### [360-10-45-9](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:01.538Z to 2026-09-10T00:06:01.538Z Record version: sha256:1aa890300e8b4b9443a7dbc8b718712c1d68c87be9053910054076aa19efd83a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A long-lived asset (disposal group) to be sold shall be classified as held for sale in the period in which all of the following criteria are met: 1. a Management, having the authority to approve the action, commits to a plan to sell the asset (disposal group). 2. b The asset (disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (disposal groups). (See Examples 5 through 7 \[paragraphs [360-10-55-37 through 55-41](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-37) \], which illustrate when that criterion would be met.) 3. c An active program to locate a buyer and other actions required to complete the plan to sell the asset (disposal group) have been initiated. 4. d The sale of the asset (disposal group) is probable, and transfer of the asset (disposal group) is expected to qualify for recognition as a completed sale, within one year, except as permitted by paragraph [360-10-45-11](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-11). (See Example 8 \[paragraph [360-10-55-43](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-43)\], which illustrates when that criterion would be met.) The term [probable](https://asc.understandingaccounting.org/glossary/p/#probable "The future event or events are likely to occur.") refers to a future sale that is likely to occur. 5. e The asset (disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value. The price at which a long-lived asset (disposal group) is being marketed is indicative of whether the entity currently has the intent and ability to sell the asset (disposal group). A market price that is reasonable in relation to fair value indicates that the asset (disposal group) is available for immediate sale, whereas a market price in excess of fair value indicates that the asset (disposal group) is not available for immediate sale. 6. f Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. ##### [360-10-45-10](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:01.538Z to 2026-09-10T00:06:01.538Z Record version: sha256:5f2369c100a14e6b1ae461e4c7cda6fc8943dcd2198aba4e6ce9f777d143627c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If at any time the criteria in this Subsection are no longer met (except as permitted by the following paragraph), a long-lived asset (disposal group) classified as held for sale shall be reclassified as held and used in accordance with paragraph [360-10-35-44](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-44). ##### [360-10-45-11](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:01.538Z to 2026-09-10T00:06:01.538Z Record version: sha256:01781897744b8d49d7263264c61f0b47f4a27540a1971693b37d6b97fc12cb5a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Events or circumstances beyond an entity's control may extend the period required to complete the sale of a long-lived asset (disposal group) beyond one year. An exception to the one-year requirement in paragraph [360-10-45-9(d)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) shall apply in the following situations in which such events or circumstances arise: 1. a If at the date an entity commits to a plan to sell a long-lived asset (disposal group) the entity reasonably expects that others (not a buyer) will impose conditions on the transfer of the asset (group) that will extend the period required to complete the sale and both of the following conditions are met: 1. 1 Actions necessary to respond to those conditions cannot be initiated until after a [firm purchase commitment](https://asc.understandingaccounting.org/glossary/f/#firm-purchase-commitment "A firm purchase commitment is an agreement with an unrelated party, binding on both parties and usually legally enforceable, that meets both of the following conditions: It specifies all significant terms, including the price and timing of the transaction. It includes a disincentive for nonperformance that is sufficiently large to make performance probable.") is obtained. 2. 2 A firm purchase commitment is probable within one year. (See Example 9 \[paragraph [360-10-55-44](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-44)\], which illustrates that situation.) 2. b If an entity obtains a firm purchase commitment and, as a result, a buyer or others unexpectedly impose conditions on the transfer of a long-lived asset (disposal group) previously classified as held for sale that will extend the period required to complete the sale and both of the following conditions are met: 1. 1 Actions necessary to respond to the conditions have been or will be timely initiated. 2. 2 A favorable resolution of the delaying factors is expected. (See Example 10 \[paragraph [360-10-55-46](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-46)\], which illustrates that situation.) 3. c If during the initial one-year period, circumstances arise that previously were considered unlikely and, as a result, a long-lived asset (disposal group) previously classified as held for sale is not sold by the end of that period and all of the following conditions are met: 1. 1 During the initial one-year period the entity initiated actions necessary to respond to the change in circumstances. 2. 2 The asset (group) is being actively marketed at a price that is reasonable given the change in circumstances. 3. 3 The criteria in paragraph [360-10-45-9](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) are met. (See Example 11 \[paragraph [360-10-55-48](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-48)\], which illustrates that situation.) ##### [360-10-45-12](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:01.538Z to 2026-09-10T00:06:01.538Z Record version: sha256:9b11037dbbae4a8b1136007fdcce5f57e529d3021247f88c85d52bb6dc3d458e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A long-lived asset (disposal group) that is newly acquired and that will be sold rather than held and used shall be classified as held for sale at the acquisition date only if the one-year requirement in paragraph [360-10-45-9(d)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) is met (except as permitted by the preceding paragraph) and any other criteria in paragraph [360-10-45-9](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) that are not met at that date are probable of being met within a short period following the acquisition (usually within three months). ##### [360-10-45-13](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:01.538Z to 2026-09-10T00:06:01.538Z Record version: sha256:bc7ae17cfb8a51eae0579b9662027596894096760afa4c1a8b158682f642b309 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the criteria in paragraph [360-10-45-9](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) are met after the balance sheet date but before the financial statements are issued or are available to be issued (as discussed in Section 855-10-25), a long-lived asset shall continue to be classified as held and used in those financial statements when issued or when available to be issued. In addition, information required by paragraph [205-20-50-1(a)](https://asc.understandingaccounting.org/asc/205/20/#205-20-50-1) shall be disclosed in the notes to financial statements. If the asset (asset group) is tested for recoverability (on a held-and-used basis) as of the balance sheet date, the estimates of future cash flows used in that test shall consider the likelihood of possible outcomes that existed at the balance sheet date, including the assessment of the likelihood of the future sale of the asset. That assessment made as of the balance sheet date shall not be revised for a decision to sell the asset after the balance sheet date. Because it is difficult to separate the benefit of hindsight when assessing conditions that existed at a prior date, it is important that judgments about those conditions, the need to test an asset for recoverability, and the application of a recoverability test be made and documented together with supporting evidence on a timely basis. An impairment loss, if any, to be recognized shall be measured as the amount by which the carrying amount of the asset (asset group) exceeds its fair value at the balance sheet date. ##### [360-10-45-14](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:01.538Z to 2026-09-10T00:06:01.538Z Record version: sha256:682bba7a6a71b47a2cc4e18eeea4892f6185a1df1601fd72ac0f77a0b6ea4a9c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A long-lived asset classified as held for sale (but not qualifying for presentation as a discontinued operation in the statement of financial position in accordance with paragraph [205-20-45-10](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-10)) shall be presented separately in the statement of financial position of the current period. The assets and liabilities of a disposal group classified as held for sale shall be presented separately in the asset and liability sections, respectively, of the statement of financial position. Those assets and liabilities shall not be offset and presented as a single amount. The major classes of assets and liabilities classified as held for sale shall be separately presented on the face of the statement of financial position or disclosed in the notes to financial statements (see paragraph [360-10-50-3(e)](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-3)). #### Long-Lived Assets to Be Disposed of Other Than by Sale ##### [360-10-45-15](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:01.538Z to 2026-09-10T00:06:01.538Z Record version: sha256:e0fc3754acd0a3b3a000ba7b05417f9d1d737863bb223bdc23bd1781e389d95d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A long-lived asset to be disposed of other than by sale (for example, by abandonment, in an exchange measured based on the recorded amount of the nonmonetary asset relinquished, or in a distribution to owners in a spinoff) shall continue to be classified as held and used until it is disposed of. The guidance on long-lived assets to be held and used in Sections 360-10-35, 360-10-45, and 360-10-50 shall apply while the asset is classified as held and used. If a long-lived asset is to be abandoned or distributed to owners in a spinoff together with other assets (and liabilities) as a group and that disposal group meets the conditions in paragraphs [205-20-45-1A through 45-1C](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1A) to be reported in discontinued operations, paragraphs [205-20-45-3 through 45-5](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-3) shall apply to the disposal group at the date it is disposed of. Source downloaded (UTC): 2026-09-10T00:06:03.812Z to 2026-09-10T00:06:03.812Z Record version: sha256:055f24b66227d89fe1eb1fed7c9e3023db71a94e9e13981a97872cec5b62728c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/360/10/#50-disclosure) SEC content: no ##### [360-10-50-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:03.812Z to 2026-09-10T00:06:03.812Z Record version: sha256:a703492d5df30053535658d2235dece01d0fc52c6f1808212965d848e5d1a365 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because of the significant effects on financial position and results of operations of the depreciation method or methods used, all of the following disclosures shall be made in the financial statements or in notes thereto: 1. a Depreciation expense for the period 2. b Balances of major classes of depreciable assets, by nature or function, at the balance sheet date 3. c Accumulated depreciation, either by major classes of depreciable assets or in total, at the balance sheet date 4. d A general description of the method or methods used in computing depreciation with respect to major classes of depreciable assets. ### Impairment or Disposal of Long-Lived Assets #### Impairment of Long-Lived Assets Classified as Held and Used ##### [360-10-50-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-2) Pending content: yes Source downloaded (UTC): 2026-09-10T00:06:03.812Z to 2026-09-10T00:06:03.812Z Record version: sha256:7d557fca04db39dc6f8f612a4d49c83e6a39902bdeafd5fd7801399d64e93fbb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following information shall be disclosed in the notes to financial statements that include the period in which an [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.") loss is recognized: 1. a A description of the impaired long-lived asset ([asset group](https://asc.understandingaccounting.org/glossary/a/#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.")) and the facts and circumstances leading to the impairment 2. b If not separately presented on the face of the statement, the amount of the impairment loss and the caption in the income statement or the statement of activities that includes that loss 3. c The method or methods for determining fair value (whether based on a quoted market price, prices for similar assets, or another valuation technique) 4. d If applicable, the segment in which the impaired long-lived asset (asset group) is reported under Topic 280. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)All of the following information shall be disclosed in the notes to financial statements that include the period in which an [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.") loss is recognized: 1. a A description of the impaired long-lived asset ([asset group](https://asc.understandingaccounting.org/glossary/a/#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.")) and the facts and circumstances leading to the impairment 2. b If not separately presented on the face of the statement, the amount of the impairment loss and the caption in the income statement or the statement of activities that includes that loss 3. c The method or methods for determining fair value (whether based on a quoted market price, prices for similar assets, or another valuation technique) 4. d If applicable, the segment in which the impaired long-lived asset (asset group) is reported under Topic 280. See paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. #### Long-Lived Assets Classified as Held for Sale or Disposed Of ##### [360-10-50-3](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-3) Pending content: yes Source downloaded (UTC): 2026-09-10T00:06:03.812Z to 2026-09-10T00:06:03.812Z Record version: sha256:a1f9f9786997ca082c9771f9bae5033a949852dbade4125ecf841403dee1754d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For any period in which a long-lived asset ([disposal group](https://asc.understandingaccounting.org/glossary/d/#disposal-group "A disposal group for a long-lived asset or assets to be disposed of by sale or otherwise represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction. A disposal group may include a discontinued operation along with other assets and liabilities that are not part of the discontinued operation.")) either has been disposed of or is classified as held for sale (see paragraph [360-10-45-9](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9)), an entity shall disclose all of the following in the notes to financial statements: 1. a A description of the facts and circumstances leading to the disposal or the expected disposal. 2. b The expected manner and timing of that disposal. 3. c The gain or loss recognized in accordance with paragraphs [360-10-35-37 through 35-45](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-37) and [360-10-40-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-5). 4. d If not separately presented on the face of the statement where net income is reported (or in the statement of activities for a not-for-profit entity), the caption in the statement where net income is reported (or in the statement of activities for a not-for-profit entity) that includes that gain or loss. 5. e If not separately presented on the face of the statement of financial position, the carrying amount(s) of the major classes of assets and liabilities included as part of a disposal group classified as held for sale. Any loss recognized on the disposal group classified as held for sale in accordance with paragraphs [360-10-35-37 through 35-45](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-37) and [360-10-40-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-5) shall not be allocated to the major classes of assets and liabilities of the disposal group. 6. f If applicable, the segment in which the long-lived asset (disposal group) is reported under Topic 280 on segment reporting. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)For any period in which a long-lived asset ([disposal group](https://asc.understandingaccounting.org/glossary/d/#disposal-group "A disposal group for a long-lived asset or assets to be disposed of by sale or otherwise represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction. A disposal group may include a discontinued operation along with other assets and liabilities that are not part of the discontinued operation.")) either has been disposed of or is classified as held for sale (see paragraph [360-10-45-9](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9)), an entity shall disclose all of the following in the notes to financial statements: 1. a A description of the facts and circumstances leading to the disposal or the expected disposal. 2. b The expected manner and timing of that disposal. 3. c The gain or loss recognized in accordance with paragraphs [360-10-35-37 through 35-45](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-37) and [360-10-40-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-5). 4. d If not separately presented on the face of the statement where net income is reported (or in the statement of activities for a not-for-profit entity), the caption in the statement where net income is reported (or in the statement of activities for a not-for-profit entity) that includes that gain or loss. 5. e If not separately presented on the face of the statement of financial position, the carrying amount(s) of the major classes of assets and liabilities included as part of a disposal group classified as held for sale. Any loss recognized on the disposal group classified as held for sale in accordance with paragraphs [360-10-35-37 through 35-45](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-37) and [360-10-40-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-5) shall not be allocated to the major classes of assets and liabilities of the disposal group. 6. f If applicable, the segment in which the long-lived asset (disposal group) is reported under Topic 280 on segment reporting. See paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. ##### [360-10-50-3A](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-3A) Pending content: yes Source downloaded (UTC): 2026-09-10T00:06:03.812Z to 2026-09-10T00:06:03.812Z Record version: sha256:da2f3f4845f665d8a9c5a7aeda41ffece01d72e5a14b35a06d5acc1640222e1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition to the disclosures in paragraph [360-10-50-3](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-3), if a long-lived asset (disposal group) includes an individually significant [component 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.") that either has been disposed of or is classified as held for sale (see paragraph [360-10-45-9](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9)) and does not qualify for presentation and disclosure as a discontinued operation (see Subtopic 205-20 on discontinued operations), a [public business entity](https://asc.understandingaccounting.org/glossary/p/#public-business-entity "A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC.") and a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") that has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market shall disclose the information in (a). All other entities shall disclose the information in (b). 1. a For a public business entity and a not-for-profit entity that has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market, both of the following: 1. 1 The pretax profit or loss (or change in net assets for a not-for-profit entity) of the individually significant component of an entity for the period in which it is disposed of or is classified as held for sale and for all prior periods that are presented in the statement where net income is reported (or statement of activities for a not-for-profit entity) calculated in accordance with paragraphs [205-20-45-6 through 45-9](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-6) 2. 2 If the individually significant component of an entity includes a noncontrolling interest, the pretax profit or loss (or change in net assets for a not-for-profit entity) attributable to the parent for the period in which it is disposed of or is classified as held for sale and for all prior periods that are presented in the statement where net income is reported (or statement of activities for a not-for-profit entity). 2. b For all other entities, both of the following: 1. 1 The pretax profit or loss (or change in net assets for a not-for-profit entity) of the individually significant component of an entity for the period in which it is disposed of or is classified as held for sale calculated in accordance with paragraphs [205-20-45-6 through 45-9](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-6) 2. 2 If the individually significant component of an entity includes a noncontrolling interest, the pretax profit or loss (or change in net assets for a not-for-profit entity) attributable to the parent for the period in which it is disposed of or is classified as held for sale. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)In addition to the disclosures in paragraph [360-10-50-3](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-3), if a long-lived asset (disposal group) includes an individually significant [component 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.") that either has been disposed of or is classified as held for sale (see paragraph [360-10-45-9](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9)) and does not qualify for presentation and disclosure as a discontinued operation (see Subtopic 205-20 on discontinued operations), a [public business entity](https://asc.understandingaccounting.org/glossary/p/#public-business-entity "A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC.") and a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") that has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market shall disclose the information in (a). All other entities shall disclose the information in (b). The following disclosures are required in interim and annual reporting periods: 1. a For a public business entity and a not-for-profit entity that has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market, both of the following: 1. 1 The pretax profit or loss (or change in net assets for a not-for-profit entity) of the individually significant component of an entity for the period in which it is disposed of or is classified as held for sale and for all prior periods that are presented in the statement where net income is reported (or statement of activities for a not-for-profit entity) calculated in accordance with paragraphs [205-20-45-6 through 45-9](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-6) 2. 2 If the individually significant component of an entity includes a noncontrolling interest, the pretax profit or loss (or change in net assets for a not-for-profit entity) attributable to the parent for the period in which it is disposed of or is classified as held for sale and for all prior periods that are presented in the statement where net income is reported (or statement of activities for a not-for-profit entity). 2. b For all other entities, both of the following: 1. 1 The pretax profit or loss (or change in net assets for a not-for-profit entity) of the individually significant component of an entity for the period in which it is disposed of or is classified as held for sale calculated in accordance with paragraphs [205-20-45-6 through 45-9](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-6) 2. 2 If the individually significant component of an entity includes a noncontrolling interest, the pretax profit or loss (or change in net assets for a not-for-profit entity) attributable to the parent for the period in which it is disposed of or is classified as held for sale. #### Foreclosed Properties Held for Sale ##### [360-10-50-4](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:03.812Z to 2026-09-10T00:06:03.812Z Record version: sha256:bf2f7621c7f44e6af9c5be892af9f440374ecb8748dbc0c4391224c10ba16b1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [310-10-50-11](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-11) for guidance related to foreclosed and repossessed assets. Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:f6d8ba7344b2396f284ffdb4d363f9e28c293c51f2fc939de943ea140d1ac2ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-10-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/360/10/#55-implementation-guidance-and-illustrations) SEC content: no ### Impairment or Disposal of Long-Lived Assets #### Implementation Guidance ##### [360-10-55-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:5bfb93aa8e920f8da24398f219e3519210951d80f3f103e93f9d9c0681b9768b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following guidance demonstrates the consideration of restoration and environmental exit costs when testing a long-lived asset for [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."). Paragraphs [360-10-35-18 through 35-19](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-18) also provide guidance for such testing for assets subject to asset retirement obligations. ##### [360-10-55-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:0bae5c3823b8538cdcde9b7b96da889fc011475e78ca10cf290e1d1154665e02 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For certain assets covered by this Subtopic, costs for future site restoration or closure (environmental exit costs) may be incurred if the asset is sold, is abandoned, or ceases operations. Environmental exit costs within the scope of this Subsection include: 1. a Asset retirement costs recognized pursuant to Subtopic 410-20 2. b Asset retirement costs that have not been recognized because the obligation has not been incurred 3. c Certain environmental remediation costs that have not yet been recognized as a liability pursuant to Subtopic 410-30. ##### [360-10-55-3](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:30fecc7d0f89224d68e2a35e1e7f3670b41b4441924c6911ff513afe173b8790 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to Subtopic 410-20, asset retirement costs may be incurred over more than one reporting period. For example, the liability for performing certain capping, closure, and postclosure activities in connection with operating a landfill is incurred as the landfill receives waste. ##### [360-10-55-4](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:9bb5552a9488963ff046bbfad5c43cf51fa1ccd8b80ba820db3321075575abb6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The related cash flows, if any, might not occur until the end of the asset's life if the asset ceases operations, or they might be deferred indefinitely as long as the asset is not sold or abandoned. ##### [360-10-55-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:041e8dc4c12c677a5a3db1973f40b5d0f166b1c9b1112868c3549b2ce759e417 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The issue is whether the cash flows associated with environmental exit costs that may be incurred if a long-lived asset is sold, is abandoned, or ceases operations should be included in the undiscounted expected future cash flows used to test a long-lived asset for recoverability under this Subtopic. ##### [360-10-55-6](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:1881bb10c27183ab2ffca68019a063b216c495eb6075a3badfe29abd50e3daa2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For environmental exit costs that have not been recognized as a liability for accounting purposes, whether those environmental exit costs shall be included in the undiscounted expected future cash flows used to test a long-lived asset for recoverability under this Subtopic depends on management's intent with respect to the asset. Pursuant to this Subtopic, if management's intent contemplates alternative courses of action to recover the carrying amount of the asset or if a range is estimated for the amount of possible future cash flows, the likelihood of those possible outcomes shall be considered. Examples of management's intent and the corresponding treatment of the environmental exit costs in this Subtopic's recoverability test are described below. (Environmental remediation costs discussed in certain of these cases refer to environmental remediation costs that have not yet been recognized as a liability pursuant to Subtopic 410-30.) This paragraph illustrates the guidance in paragraphs [360-10-35-29 through 35-35](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-29) on estimating future cash flows used to test a long-lived asset for recoverability. ##### [360-10-55-7](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:c5c019991a36fd4384caab03ba74ba5bd5c85f0d493639874313bc565db7650a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following guidance demonstrates the consideration of restoration and environmental exit costs when testing a long-lived asset for impairment. In all of the following situations, environmental exit costs would be excluded from this Subtopic's recoverability test. ##### [360-10-55-8](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:6ec09c49de8cfdecd1565bb8ebee262858fe1db8c4a077ac828b4c9136288044 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Management intends to operate the asset for at least the asset's remaining depreciable life, the sum of the undiscounted future cash flows expected from the asset's use during that period exceeds the asset's carrying amount including any associated goodwill, and management has no reason to believe that the asset's eventual disposition will result in a net cash outflow. ##### [360-10-55-9](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:f430e5416cd0d94adfb906d677b79454f5c453adb8f5f0aecf828dd509fee7c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Management expects to operate the asset indefinitely and has the ability to do so, the asset is generating positive cash flows, management's best information indicates that the asset will continue to be profitable in the future, and there are no known constraints to the asset's economic life. This Subtopic's recoverability test shall include the future cash outflows for repairs, maintenance, and capital expenditures necessary to obtain the future cash inflows expected to be generated by the asset based on its existing service potential. ##### [360-10-55-10](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:63f6f1dde2b3fe7de3e3755bef1c76e89e3996f4f12fa7a45ebebff063323dd7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The asset has a finite economic life, but environmental remediation costs will only be incurred if the asset is sold or abandoned. At the end of the asset's life, management intends either to close the asset permanently because the costs of remediating the asset exceed the proceeds that likely would be received if the asset were sold or, alternatively, to idle the asset by reducing production to a minimal or nominal amount. (Although the environmental remediation costs are excluded from this Subtopic's recoverability test, the recoverability test shall incorporate the entity's own assumptions about its use of the asset. That is, the recoverability test shall consider the likelihood of the alternative courses of action \[either closing or idling the asset\] and the resulting cash flows associated with those alternative courses.) ##### [360-10-55-11](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:51806b92f0fda59524693fa1a15932007e313ad73a545312c12c5f01b559f9e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Management expects to sell the asset in the future, and the asset's sale will not require the environmental remediation costs to be incurred. (Although the environmental remediation costs are excluded from this Subtopic's recoverability test, the fair value of the asset is likely to be affected by the existence of those costs. The diminished fair value shall be considered in estimating the cash flows expected to arise from the eventual sale of the asset.) ##### [360-10-55-12](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:d5e136bb2423ce5399e6f1bccec921b325bcbee6e5ed058e9d53bf85fa4af43f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following guidance demonstrates the consideration of restoration and environmental exit costs when testing a long-lived asset for impairment. In all of the following situations, environmental exit costs would be included in this Subtopic's recoverability test. ##### [360-10-55-13](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:1905544eda3f70829e2cda3407c1e5f322b9bfdba8eddbff074735de61600fd1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Management expects to take a future action related to the asset that may cause the environmental remediation costs to be incurred. However, uncertainties or inconsistencies exist in how the related laws or regulatory requirements are applied. Management estimates, based on the weight of the available evidence, a 60 percent chance that the remediation costs will not be incurred and a 40 percent chance that those costs will be incurred. Pursuant to this Subtopic, other situations may exist in which cash flows are estimated using a single set or best estimate of cash flows. ##### [360-10-55-14](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:ef4af981c7d21a47a2b1ba30ede94264fda35f0388aa2ee18267b343596ae8c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The useful life of the asset is limited as a result of any of the following: 1. a Actual or expected technological advances 2. b Contractual provisions 3. c Regulatory restrictions. Also, when the asset's service potential has ended, management will be required to dispose of the asset under paragraph [360-10-55-16](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-16) or [360-10-55-17](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-17). ##### [360-10-55-15](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:7f5481bb0c38d17fce733251008c8011336b9bf93fe2466ebe0c57a950b19c20 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The asset has a current period cash flow loss from operations combined with a projection or forecast that anticipates continuing losses. Management expects the asset to achieve profitability in the future but uncertainty exists about management's ability to fund the future cash outflows up to the time that net cash inflows are expected from the asset's use. In the event of a forced liquidation, management would likely dispose of the asset under the following paragraph or paragraph [360-10-55-17](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-17). ##### [360-10-55-16](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:0ef5c012198874fb70c8c76e16f2a8cf27afbab3e2acba76fa4b1b00d58f7c97 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Management intends to abandon or close the asset in the future, and the event of abandonment or closure will cause the environmental remediation costs to be incurred. ##### [360-10-55-17](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:8361af7148844aa88614be8a0e1e140301930eb7f23908cf96339fd54c681bab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Management intends to sell the asset in the future, and the applicable laws, regulations, or interpretations thereof require that appropriate environmental remediation (not within the scope of Subtopic 410-20) occur in connection with the sale. ##### [360-10-55-18](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:bb835bec1b4e5280c116393536b4b8eb51e90b00c5697091aa14fc887d162425 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Management expects to operate the asset for the remainder of its useful life. Related asset retirement costs are incurred over the life of the asset (for example, the operation of a landfill). Estimated cash flows associated with the asset retirement costs yet to be incurred and recognized shall be included in this Subtopic's recoverability test. ##### [360-10-55-18A](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-18A) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:57c73fb7589c795f6c82cbcc1994b025447bc09ef3b337b5db9b395c1115c5e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following flowchart provides an overview of the disclosures required for disposals of long-lived assets and individually significant components of an entity that do not qualify for presentation and disclosure as a discontinued operation (see Subtopic 205-20 on discontinued operations). - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-C01B2D26-66C6-4A65-AD77-F3F089D2CCDA-low.gif) "Does the disposal meet the criteria in paragraphs 205-20-45-1A through 45-1C?" "For any period in which a long-lived asset (disposal group) either has been disposed of or is classified as held for sale (see paragraph 360-10-45-9), disclose all of the following in the notes to financial statements (see paragraph 360-10-50-3):" Disposal qualifies as a discontinued operation. See the flowchart in paragraph 205-20-55-82 for the required disclosures for a discontinued operation. Yes a. A description of the facts and circumstances leading to the disposal or expected disposal. b. The expected manner and timing of that disposal. "e. If not separately presented on the face of the statement of financial position, the carrying amount(s) of the major classes of assets and liabilities included as part of the disposal group classified as held for sale." c. The gain or loss recognized in accordance with paragraphs 360-10-35-37 through 35-45 and 360-10-40-5. "d. If not separately presented on the face of the statement where net income is reported (or statement of activities), the caption in the statement where net income is reported (or statement of activities) that includes that gain or loss." "f. If applicable, the segment in which the long-lived asset (disposal group) is reported under Topic 280 on segment reporting." "Does the long-lived asset include an individually significant component of an entity that either has been disposed of or is classified as held for sale?" Disclosures are complete. No Yes "Is the entity a public business entity or a not-for-profit entity that has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market?" "Disclose both of the following in the notes to financial statements (see paragraph 360-10-50-3A(a)):" Disclose both of the following in the notes to financial statements (see paragraph 360-10-50-3A(b)): 1. Pretax profit or loss (or change in net assets) of the individually significant component of an entity for the period in which it is disposed of or is classified as held for sale and for all prior periods that are presented in the statement where net income is reported (or statement of activities) calculated in accordance with paragraphs 205-20-45-6 through 45-9. "2. If the individually significant component of an entity includes a noncontrolling interest, the pretax profit or loss (or change in net assets) attributable to the parent for the period in which it is disposed of or is classified as held for sale and for all prior periods that are presented in the statement where net income is reported (or statement of activities)." 1. Pretax profit or loss (or change in net assets) of the individually significant component of an entity for the period in which it is disposed of or is classified as held for sale calculated in accordance with paragraphs 205-20-45-6 through 45-9. "2. If the individually significant component of an entity includes a noncontrolling interest, the pretax profit or loss (or change in net assets) attributable to the parent for the period in which it is disposed of or is classified as held for sale." No No Yes Required Disclosures for the Disposal of an Asset and Component of an Entity #### Illustrations ##### [360-10-55-19](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-19) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:a1088fa76e34b28ca4411667367f179e8eb8a876e71f842e3a5ff02d23d11249 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Examples illustrate application of some of the provisions of this Subtopic. The Examples do not address all possible situations or applications of this Subtopic. ##### [360-10-55-20](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-20) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:db79b1aceaafe70f81561953d0a9a43a6bb34fcf1c34caaa28a361dba71c712e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the allocation of an impairment loss to the long-lived assets of an [asset group](https://asc.understandingaccounting.org/glossary/a/#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.") (see paragraph [360-10-35-28](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-28)). ##### [360-10-55-21](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-21) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:b2bce6906f4767b3fca92ee478635bcd37d5eeeb49a6ca56cf025ee09e028566 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity owns a manufacturing facility that together with other assets is tested for recoverability as a group. In addition to long-lived assets (Assets A-D), the asset group includes inventory measured using first-in, first-out (FIFO), which is reported at the lower of cost and [net realizable value](https://asc.understandingaccounting.org/glossary/n/#net-realizable-value "Estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.") in accordance with Topic 330, and other current assets and liabilities that are not covered by this Subtopic. The $2.75 million aggregate carrying amount of the asset group is not recoverable and exceeds its fair value by $600,000. In accordance with paragraph [360-10-35-28](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-28), the impairment loss of $600,000 would be allocated as shown below to the long-lived assets of the group. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-8FC98CC6-9F79-4B79-90EE-C6D13AC67187-low.gif) Asset Group Carrying Amount (in $ 000s) Pro Rata Allocation Factor Allocation of Impairment (Loss) (in $ 000s) Adjusted Carrying Amount (in $ 000s) Current assets $400 - $- $400 Liabilities (150) - - (150) Long-lived assets: Asset A 590 24% (144) 446 Asset B 780 31 (186) 594 Asset C 950 38 (228) 722 Asset D 180 7 (42) 138 Subtotal—long-lived assets " 2,500 " 100 (600) " 1,900 " Total " $2,750 " 100% $(600) " $2,150 " ##### [360-10-55-22](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-22) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:05573766a5f789494bde6dd64c3122e6609577a08bd3828e215e8235623453ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the fair value of an individual long-lived asset of an asset group is determinable without undue cost and effort and exceeds the adjusted carrying amount of that asset after an impairment loss is allocated initially, the excess impairment loss initially allocated to that asset would be reallocated to the other long-lived assets of the group. For example, if the fair value of Asset C is $822,000, the excess impairment loss of $100,000 initially allocated to that asset (based on its adjusted carrying amount of $722,000) would be reallocated as shown below to the other long-lived assets of the group on a pro rata basis using the relative adjusted carrying amounts of those assets. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-30155C57-8514-4CEE-971F-42AD9EF8C918-low.gif) Long-Lived Assets of Asset Group Adjusted Carrying Amount (in $ 000s) Pro Rata Reallocation Factor Reallocation of Excess Impairment (Loss) (in $ 000s) Adjusted Carrying Amount after Reallocation (in $ 000s) Asset A $446 38% $(38) $408 Asset B 594 50 (50) 544 Asset D 138 12 (12) 126 Subtotal " 1,178 " 100% (100) " 1,078 " Asset C 722 100 822 Total—long-lived assets " $1,900 " $- " $1,900 " ##### [360-10-55-23](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-23) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:f8166f10e3f1ab00ac400ca90d95951b8158d3a81c8e810f05c9dce4a33dd563 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the use of a probability-weighted approach for developing estimates of future cash flows used to test a long-lived asset for recoverability when alternative courses of action are under consideration (see paragraph [360-10-35-30](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-30)). This Example has the following Cases: 1. a Probability-weighted cash flows (Case A) 2. b Expected cash flows technique (Case B). ##### [360-10-55-24](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-24) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:30f55d3ba33e13942587fdff1e4839c9a2341e401ce1e8cce48d883081350554 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cases A and B share all of the following assumptions. ##### [360-10-55-25](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-25) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:dab032751beeda89b33f1ea200b05d18eaa87723d345a57b41ab40ae5a7584cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As of December 31, 20X2, a manufacturing facility with a carrying amount of $48 million is tested for recoverability. At that date, 2 courses of action to recover the carrying amount of the facility are under consideration—sell in 2 years or sell in 10 years (at the end of its remaining useful life). ##### [360-10-55-26](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-26) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:b9d2a36c401d23b99fbc9924195b058f4a679ed12f47b391fc0912a68bcc226b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The possible cash flows associated with each of those courses of action are $41 million and $48.7 million, respectively. They are developed based on entity-specific assumptions about future sales (volume and price) and costs in varying scenarios that consider the likelihood that existing customer relationships will continue, changes in economic (market) conditions, and other relevant factors. ##### [360-10-55-27](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-27) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:170c97277dfc1c03b72a3100585022a70685fff3c61f1064ab615b028b1cefee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table shows the possible cash flows associated with each of the courses of action—sell in 2 years or sell in 10 years. - ![](https://asc.understandingaccounting.org/asc-img/GUID-7ED3B439-5822-4F15-9A60-FAE3E47EF30F-low.gif) Course of Action Cash Flows (Use) (in $ millions) Cash Flows (Disposition) (in $ millions) "Cash Flows (Total) (in $ millions)" Probability Assessment Possible Cash Flows (Probability-Weighted) (in $ millions) Sell in 2 years $8 $30 $38 20% $7.6 11 30 41 50 20.5 13 30 43 30 12.9 $41.0 Sell in 10 years 36 1 37 20% $7.4 48 1 49 50 24.5 55 1 56 30 16.8 $48.7 ##### [360-10-55-28](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-28) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:49bf7b463ab2a916d3c0e7aa7088ae45301483e3b5a9de75f7c7d79b172d1d1d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As further indicated in the following table, there is a 60 percent probability that the facility will be sold in 2 years and a 40 percent probability that the facility will be sold in 10 years. ##### [360-10-55-29](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-29) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:826f3d170e29d063566f6281a9ffa9b6dd79f45c2f28d342023327ac2917ea58 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The alternatives of whether to sell or use an asset are not necessarily independent of each other. In many situations, after estimating the possible future cash flows relating to those potential courses of action, an entity might select the course of action that results in a significantly higher estimate of possible future cash flows. In that situation, the entity generally would use the estimates of possible future cash flows relating only to that course of action in computing future cash flows. As shown, the expected cash flows are $44.1 million (undiscounted). Therefore, the carrying amount of the facility of $48 million would not be recoverable. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-8B5F62AE-5682-4258-92D7-36E2038A2B49-low.gif) Course of Action Possible Cash Flows (Probability-Weighted) (in $ millions) Probability Assessment (Course of Action) Expected Cash Flows (Undiscounted) (in $ millions) Sell in 2 years $41.0 60% $24.6 Sell in 10 years 48.7 40 19.5 $44.1 ##### [360-10-55-30](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-30) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:25aa7f293dd0bc68cc4c4a34a7312d73fd7b1b6dc2a91455aca759ba7def9ec4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Case illustrates the application of an expected present value technique to estimate the fair value of a long-lived asset in an impairment situation. ##### [360-10-55-31](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-31) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:9bd3af7095055de46cb2fc37f6e63848a99f2cff313f4809d5594f933db29153 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table shows by year the computation of the expected cash flows used in the measurement. They reflect the possible cash flows (probability-weighted) used to test the manufacturing facility for recoverability in Case A, adjusted for relevant marketplace assumptions, which increases the possible cash flows in total by approximately 15 percent. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-9B4FF84B-E504-412A-A07D-6D95F0A3DBEF-low.gif) Year Possible Cash Flows (Market) (in $ millions) Probability Assessment Expected Cash Flows (Undiscounted) (in $ millions) 1 $4.6 20% $0.9 6.3 50 3.2 7.5 30 2.3 $6.4 2 $4.6 20% $0.9 6.3 50 3.2 7.5 30 2.3 $6.4 3 $4.3 20% $0.9 5.8 50 2.9 6.7 30 2.0 $5.8 4 $4.3 20% $0.9 5.8 50 2.9 6.7 30 2.0 $5.8 5 $4.0 20% $0.8 5.4 50 2.7 6.4 30 1.9 $5.4 6 $4.0 20% $0.8 5.4 50 2.7 6.4 30 1.9 $5.4 7 $3.9 20% $0.8 5.1 50 2.6 5.6 30 1.7 $5.1 8 $3.9 20% $0.8 5.1 50 2.6 5.6 30 1.7 $5.1 9 $3.9 20% $0.8 5.0 50 2.5 5.5 30 1.7 $5.0 10 $4.9 20% $1.0 6.0 50 3.0 6.5 30 2.0 $6.0 ##### [360-10-55-32](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-32) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:01c1488befc8f72f2c3e6683b20b31bcb1d3b3dfdf7a269285b218adcea1b0b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table shows the computation of the expected present value; that is, the sum of the present values of the expected cash flows by year, each discounted at a risk-free interest rate determined from the yield curve for U.S. Treasury instruments. In this Case, a market risk premium is included in the expected cash flows; that is, the cash flows are certainty equivalent cash flows. As shown, the expected present value is $42.3 million, which is less than the carrying amount of $48 million. In accordance with paragraph [360-10-35-17](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-17) the entity would recognize an impairment loss of $5.7 million. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-C02BFC7F-6EFA-4605-8F75-29DAEE50D9CB-low.gif) Year Expected Cash Flows (Undiscounted) (in $ millions) Risk-Free Rate of Interest Expected Present Value (in $ millions) 1 $6.4 5.0% $6.1 2 6.4 5.1 5.8 3 5.8 5.2 5.0 4 5.8 5.4 4.7 5 5.4 5.6 4.1 6 5.4 5.8 3.9 7 5.1 6.0 3.4 8 5.1 6.2 3.2 9 5.0 6.4 2.9 10 6.0 6.6 3.2 $56.4 $42.3 ##### [360-10-55-33](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-33) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:1f027ef858fd391194eef22c82ea61729fad693a4cb965ed1ae3fce6f59eea20 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A long-lived asset that is under development may be part of an asset group that is in use. In that situation, estimates of future cash flows used to test the recoverability of that group shall include the cash flows associated with future expenditures necessary to maintain the existing service potential of the group as well as the cash flows associated with future expenditures necessary to substantially complete the asset that is under development (see paragraph [360-10-35-35](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-35)). ##### [360-10-55-34](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-34) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:0651a0b539306b860a7166162e40563284f578d995f70c7a25d7c71a1c432d5e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity engaged in mining and selling phosphate estimates future cash flows from its commercially minable phosphate deposits in order to test the recoverability of the asset group that includes the mine and related long-lived assets (plant and equipment). Deposits from the mined rock must be processed in order to extract the phosphate. As the active mining area expands along the geological structure of the mine, a new processing plant is constructed near the production area. Depending on the size of the mine, extracting the minable deposits may require building numerous processing plants over the life of the mine. In testing the recoverability of the mine and related long-lived assets, the estimates of future cash flows from its commercially minable phosphate deposits would include cash flows associated with future expenditures necessary to build all of the required processing plants. ##### [360-10-55-35](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-35) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:f9c4997df48c33bcdfbc49bcc8840d9894b02f95e353c353903ee8bea6e81048 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Varying facts and circumstances will inevitably justify different groupings of assets for impairment review. While grouping at the lowest level for which there are identifiable cash flows for recognition and measurement of an impairment loss is understood, determining that lowest level requires considerable judgment. ##### [360-10-55-36](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-36) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:d83a171dcd373a7caafa4d673cb65257cfdac31d9bcf17251c68cf6d7efdd638 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the need for judgment in grouping assets for impairment, as discussed in paragraphs [360-10-35-23 through 35-25](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-23) . In this Example, an entity operates a bus entity that provides service under contract with a municipality that requires minimum service on each of five separate routes. Assets devoted to serving each route and the cash flows from each route are discrete. One of the routes operates at a significant deficit that results in the inability to recover the carrying amounts of the dedicated assets. The five bus routes would be an appropriate level at which to group assets to test for and measure impairment because the entity does not have the option to curtail any one bus route. ##### [360-10-55-37](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-37) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:643edd397703d96f0d8401fde83fe9957f898410819294bcebf46d648506e8e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the classification as held for sale of a long-lived asset ([disposal group](https://asc.understandingaccounting.org/glossary/d/#disposal-group "A disposal group for a long-lived asset or assets to be disposed of by sale or otherwise represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction. A disposal group may include a discontinued operation along with other assets and liabilities that are not part of the discontinued operation.")) in accordance with paragraph [360-10-45-9(b)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9). ##### [360-10-55-38](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-38) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:eee53dd330310874c7ff326cf03a9d753b7241cdf9b9c284f85e6c374fff4fa3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity commits to a plan to sell its headquarters building and has initiated actions to locate a buyer. The following illustrate situations in which the criterion in paragraph [360-10-45-9(b)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) would or would not be met: 1. a The entity intends to transfer the building to a buyer after it vacates the building. The time necessary to vacate the building is usual and customary for sales of such assets. The criterion in paragraph [360-10-45-9(b)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) would be met at the plan commitment date. 2. b The entity will continue to use the building until construction of a new headquarters building is completed. The entity does not intend to transfer the existing building to a buyer until after construction of the new building is completed (and it vacates the existing building). The delay in the timing of the transfer of the existing building imposed by the entity (seller) demonstrates that the building is not available for immediate sale. The criterion in paragraph [360-10-45-9(b)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) would not be met until construction of the new building is completed, even if a [firm purchase commitment](https://asc.understandingaccounting.org/glossary/f/#firm-purchase-commitment "A firm purchase commitment is an agreement with an unrelated party, binding on both parties and usually legally enforceable, that meets both of the following conditions: It specifies all significant terms, including the price and timing of the transaction. It includes a disincentive for nonperformance that is sufficiently large to make performance probable.") for the future transfer of the existing building is obtained earlier. ##### [360-10-55-39](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-39) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:bb83ae21b8ee83f0b833e34f8c9e0df4c915a7053a401236ce738c069f74e408 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the classification as held for sale of a long-lived asset (disposal group) in accordance with paragraph [360-10-45-9(b)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9). ##### [360-10-55-40](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-40) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:138a3023f21330f0481e31c1c91b0f853d421fb6084a22d2bade6346953e4648 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity commits to a plan to sell a manufacturing facility and has initiated actions to locate a buyer. At the plan commitment date, there is a backlog of uncompleted customer orders. The following illustrate situations in which the criterion in paragraph [360-10-45-9(b)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) would or would not be met: 1. a The entity intends to sell the manufacturing facility with its operations. Any uncompleted customer orders at the sale date would transfer to the buyer. The transfer of uncompleted customer orders at the sale date will not affect the timing of the transfer of the facility. The criterion in paragraph [360-10-45-9(b)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) would be met at the plan commitment date. 2. b The entity intends to sell the manufacturing facility, but without its operations. The entity does not intend to transfer the facility to a buyer until after it ceases all operations of the facility and eliminates the backlog of uncompleted customer orders. The delay in the timing of the transfer of the facility imposed by the entity (seller) demonstrates that the facility is not available for immediate sale. The criterion in paragraph [360-10-45-9(b)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) would not be met until the operations of the facility cease, even if a firm purchase commitment for the future transfer of the facility is obtained earlier. ##### [360-10-55-41](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-41) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:cddf779057d1bd419c994167022332da688600236dd0053b8f29b66e0f08d3c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the classification as held for sale of a long-lived asset (disposal group) in accordance with paragraph [360-10-45-9(b)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9). ##### [360-10-55-42](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-42) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:8682bd3a616fe954ab16c27cad7ca80781f2189c285bc8dff434d7f5a2daf010 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity acquires through foreclosure a real estate property that it intends to sell. The following illustrate situations in which the criterion in paragraph [360-10-45-9(b)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) would not be met: 1. a The entity does not intend to transfer the property to a buyer until after it completes renovations to increase its sales value. The delay in the timing of the transfer of the property imposed by the entity (seller) demonstrates that the property is not available for immediate sale. The criterion in paragraph [360-10-45-9(b)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) would not be met until the renovations are completed. 2. b After the renovations are completed and the property is classified as held for sale but before a firm purchase commitment is obtained, the entity becomes aware of environmental damage requiring remediation. The entity still intends to sell the property. However, the entity does not have the ability to transfer the property to a buyer until after the remediation is completed. The delay in the timing of the transfer of the property imposed by others before a firm purchase commitment is obtained demonstrates that the property is not available for immediate sale. The criterion in paragraph [360-10-45-9(b)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) would not continue to be met. The property would be reclassified as held and used in accordance with paragraph [360-10-45-7](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-7). ##### [360-10-55-43](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-43) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:cf0a90f77e6c7a91ed00f610d3a6e4f1b3231a1ce40ca53b5a003911b0ebc05f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the classification as held for sale of a long-lived asset (disposal group) in accordance with the criterion in paragraph [360-10-45-9(d)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9). The following illustrates situations in which that criterion would not be met: 1. a An entity that is a commercial leasing and finance company is holding for sale or lease equipment that has recently come off lease and the ultimate form of a future transaction (sale or lease) has not yet been determined. 2. b An entity commits to a plan to sell an asset that is in use and lease back that asset; however, the transfer of the asset will not be accounted for as a sale and leaseback transaction because the buyer-lessor does not obtain control of the asset based on the guidance in paragraphs [842-40-25-1 through 25-3](https://asc.understandingaccounting.org/asc/842/40/#842-40-25-1) . The asset would continue to be classified as held and used following the appropriate guidance in Sections 360-10-35, 360-10-45, and 360-10-50. ##### [360-10-55-44](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-44) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:daf13827359ed5371441917743be22e20d4388181e4c71f477fc66c666f0bd4a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates an exception to the one-year requirement in paragraph [360-10-45-9(d)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) to complete the sale of a long-lived asset (disposal group) (see paragraph [360-10-45-11](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-11)). The following illustrates situations in which the conditions for an exception to the criterion in paragraph [360-10-45-9(d)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) would be met. ##### [360-10-55-45](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-45) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:131bc251a05a9207b08c5e0cac35e31babbf0984065c7dc9db292fdd0dce75d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity in the utility industry commits to a plan to sell a disposal group that represents a significant portion of its regulated operations. The sale will require regulatory approval, which could extend the period required to complete the sale beyond one year. Actions necessary to obtain that approval cannot be initiated until after a buyer is known and a firm purchase commitment is obtained. However, a firm purchase commitment is probable within one year. In that situation, the conditions in paragraph [360-10-45-11(a)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-11) for an exception to the one-year requirement in paragraph [360-10-45-9(d)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) would be met. ##### [360-10-55-46](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-46) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:52758d8397a4e98ac4ed54475bd8797e76be934ea931e8b30cad9b10a3643f57 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates an exception to the one-year requirement in paragraph [360-10-45-9(d)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) to complete the sale of a long-lived asset (disposal group) (see paragraph [360-10-45-11](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-11)). The following illustrates a situation in which the conditions for an exception to the criterion in paragraph [360-10-45-9(d)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) would be met. ##### [360-10-55-47](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-47) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:d176610d14ddc884e2f75ed9392545f3e64a4016511d744804e4e583bd37b024 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity commits to a plan to sell a manufacturing facility in its present condition and classifies the facility as held for sale at that date. After a firm purchase commitment is obtained, the buyer's inspection of the property identifies environmental damage not previously known to exist. The entity is required by the buyer to remediate the damage, which will extend the period required to complete the sale beyond one year. However, the entity has initiated actions to remediate the damage, and satisfactory remediation of the damage is probable. In that situation, the conditions in paragraph [360-10-45-11(b)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-11) for an exception to the one-year requirement in paragraph [360-10-45-9(d)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) would be met. ##### [360-10-55-48](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-48) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:46a6bb1a7aae13b4d8dfae6e51f2ae7e130afb4dceebb473976efafc01ba8294 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates an exception to the one-year requirement in paragraph [360-10-45-9(d)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) to complete the sale of a long-lived asset (disposal group) (see paragraph [360-10-45-11](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-11)). ##### [360-10-55-49](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-49) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:64f4f2d96eee7fd5c88e83e40ba7af1923094a6b257ee7c8b17f3a48b11b84f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity commits to a plan to sell a long-lived asset and classifies the asset as held for sale at that date. The following illustrates situations in which the conditions for an exception to the criterion in paragraph [360-10-45-9(d)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) would or would not be met: 1. a During the initial one-year period, the market conditions that existed at the date the asset was classified initially as held for sale deteriorate and, as a result, the asset is not sold by the end of that period. During that period, the entity actively solicited but did not receive any reasonable offers to purchase the asset and, in response, reduced the price. The asset continues to be actively marketed at a price that is reasonable given the change in market conditions, and the criteria in paragraph [360-10-45-9](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) are met. In that situation, the conditions in paragraph [360-10-45-11(c)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-11) for an exception to the one-year requirement in paragraph [360-10-45-9(d)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) would be met. At the end of the initial one-year period, the asset would continue to be classified as held for sale. 2. b During the following one-year period, market conditions deteriorate further, and the asset is not sold by the end of that period. The entity believes that the market conditions will improve and has not further reduced the price of the asset. The asset continues to be held for sale, but at a price in excess of its current fair value. In that situation, the absence of a price reduction demonstrates that the asset is not available for immediate sale as required by the criterion in paragraph [360-10-45-9(b)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9). In addition, the criterion in paragraph [360-10-45-9(e)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) requires that an asset be marketed at a price that is reasonable in relation to its current fair value. Therefore, the conditions in paragraph [360-10-45-11(c)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-11) for an exception to the one-year requirement in paragraph [360-10-45-9(d)](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) would not be met. The asset would be reclassified as held and used in accordance with paragraph [360-10-35-44](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-44). ##### [360-10-55-50](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-50) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:fbd21dcc0790715e49bf82da5f6284e7e3bc3c1a9da3351516d517df9539eca9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Offshore Industries is a manufacturer of offshore drilling rigs and platforms. The entity's manufacturing process requires significant specialized equipment, which it currently owns. As a result of a decline in the price of oil, the demand for its products and services has fallen dramatically in the past two years, resulting in a significant underutilization of its manufacturing capacity. ##### [360-10-55-51](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-51) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:917f0a7545b2391a5d356d1b34ec6deb0bafb8a8184eb8e4d11fe1cfa9bc9d60 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The entity depreciates its investments in specialized equipment based on its original estimate of the remaining useful lives of the equipment using the units-of-production method, since it believes that the exhaustion of usefulness of these specialized assets relates more to their use than to the passage of time. The entity reevaluates these estimates in light of current conditions in accordance with generally accepted accounting principles (GAAP). The entity also monitors the policies of its major competitors and is aware that several have reported large write-downs of similar assets. Nevertheless, while the entity believes that it is at least reasonably possible that its estimate that it will recover the carrying amount of those assets from future operations will change during the next year, it believes it is more likely that conditions in the industry will improve and that no write-down for impairment will be necessary. ##### [360-10-55-52](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-52) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:039dadcfadaea90b1eb5c9a68cb3814cc44c6b7994044eca1b6ee1fc9a5203b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The entity would make the following disclosure: - Offshore's policy is to depreciate specialized manufacturing equipment (with a net book value of $25 million at December 31, 19X7) over its remaining useful life using the units-of-production method and to evaluate the remaining life and recoverability of such equipment in light of current conditions. \[Given the excess capacity in the industry,\] it is reasonably possible that the entity's estimate that it will recover the carrying amount of this equipment from future operations will change in the near term. ##### [360-10-55-53](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-53) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:5932c1ac57f73013d362dd12c12d19c8c6834eb5847bbb26400c7a47d019538c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Regarding the preceding illustrative disclosure, if the information in the first sentence is already disclosed elsewhere in the notes, it need not be repeated. Also, the bracketed material in the second sentence represents an example of voluntary disclosure that is encouraged by paragraph [275-10-50-9](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-9). ##### [360-10-55-54](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-54) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:07.246Z to 2026-09-10T00:06:07.246Z Record version: sha256:1f79aae4edc0e1b96b6880ced69140aac04397fbac8737191d4832e6110d5e18 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In this Example, the entity acknowledges that the carrying amount of the specialized assets is subject to significant uncertainty based on current conditions. The uncertainty relates to the measurement of the specialized assets at the date of the financial statements, and the entity's disclosure makes clear that it is at least reasonably possible that the carrying amount will change in the near term. Source downloaded (UTC): 2026-09-10T00:06:09.827Z to 2026-09-10T00:06:09.827Z Record version: sha256:a5272a2d458121e3b67274a0c607068251b82a32b4b38a0755d5115e8b6c71cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-10-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/360/10/#60-relationships) SEC content: no #### Real Estate—Real Estate Investment Trusts ##### [360-10-60-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-60-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:09.827Z to 2026-09-10T00:06:09.827Z Record version: sha256:323c28923cadb5f7a73ced821c2e9f8156089bfca7c536a1f7a1ed9934b28506 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a discussion of the appropriate accounting affecting property, plant, and equipment by a real estate investment trust for operating support from its adviser, see paragraph [974-720-25-2](https://asc.understandingaccounting.org/asc/720/974/#720-974-25-2). Source downloaded (UTC): 2026-09-10T00:06:15.250Z to 2026-09-10T00:06:15.250Z Record version: sha256:3306b87cb7c54f5009cb902a8292d25f932cd8396758344f9f4466df3eea28f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-10-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/360/10/#sec-00-status) SEC content: yes ##### [360-10-S00-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-S00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:15.250Z to 2026-09-10T00:06:15.250Z Record version: sha256:379c2e1df8ced09da0075735088df53926e0aa14088272318c40687ec1353201 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
360-10-S99-2AmendedAccounting Standards Update No. 2012-0308/27/2012
Source downloaded (UTC): 2026-09-10T00:06:18.996Z to 2026-09-10T00:06:18.996Z Record version: sha256:20ac9825f605f689494f3cccff71d98eef3328e583db56c95cb2a9ce011b366e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-10-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/360/10/#sec-45-other-presentation-matters) SEC content: yes #### Presentation of Disposal Gains or Losses in Continuing Operations ##### [360-10-S45-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-S45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:18.996Z to 2026-09-10T00:06:18.996Z Record version: sha256:b78b7bb3758d42f2dd38f8d97303f4045213611ce8b1558f7cfb5a50a4558971 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [360-10-S99-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-S99-1), SAB Topic 5.B, for SEC Staff views on the presentation of gains or losses from the disposition of equipment. #### Presentation of Accumulated Depreciation ##### [360-10-S45-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-S45-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:18.996Z to 2026-09-10T00:06:18.996Z Record version: sha256:5edf8dd2d8c4915c4585933a0e916f6a930aac926d2f0fc5724021feba692a02 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.14, for the presentation requirements of accumulated depreciation within the balance sheet or notes thereto. ### Impairment or Disposal of Long-lived Assets #### Presentation of Disposal Gains or Losses ##### [360-10-S45-3](https://asc.understandingaccounting.org/asc/360/10/#360-10-S45-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:18.996Z to 2026-09-10T00:06:18.996Z Record version: sha256:116f334b3fad7fff3288c22319b09cc79789541740b2377f2edd045fc0316b9c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [360-10-S99-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-S99-1), SAB Topic 5.B, for SEC Staff views on the presentation of gains or losses from the disposal of equipment. Source downloaded (UTC): 2026-09-10T00:06:23.052Z to 2026-09-10T00:06:23.052Z Record version: sha256:e830cd8183de01fee89adac5f0719f865f545603f425485730973b55b74a9c16 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-10-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/360/10/#sec-50-disclosure) SEC content: yes #### Required Disclosure Regarding Basis for Determining Amounts of Property, Plant, and Equipment ##### [360-10-S50-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-S50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:23.052Z to 2026-09-10T00:06:23.052Z Record version: sha256:2368a876e28a631ed03999dec940501989724fa7f3cc067b15aacf28781352d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.13(a), for required disclosure regarding the basis for determining amounts of property, plant, and equipment. Source downloaded (UTC): 2026-09-10T00:06:26.889Z to 2026-09-10T00:06:26.889Z Record version: sha256:b4b6a0e217210cc00119a8becc40386c19f7c9af3415ed7f84cceb291bcaa246 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-10-S55: SEC 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/360/10/#sec-55-implementation-guidance-and-illustrations) SEC content: yes ### Impairment or Disposal of Long-lived Assets #### Long-Lived Assets to Be Abandoned ##### [360-10-S55-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-S55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:26.889Z to 2026-09-10T00:06:26.889Z Record version: sha256:d7312c10231897a445e5e3b4d893aed6fa76417f2100ca981bdfc54bfbbdfe40 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [360-10-S99-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-S99-2), SAB Topic 5.CC, for SEC Staff views on the accounting for long-lived assets that are to be abandoned in the near future. #### Estimates of Future Cash Flows Used to Test a Long-Lived Asset for Recoverability ##### [360-10-S55-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-S55-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:26.889Z to 2026-09-10T00:06:26.889Z Record version: sha256:f1a28c44798dc4405ce7e5f062a3564fbd1deab3f57b158a4dd99631985c1952 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [360-10-S99-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-S99-2), SAB Topic 5.CC, for SEC Staff views on estimating future cash flows for the purposes of performing an impairment test. Source downloaded (UTC): 2026-09-10T00:06:33.252Z to 2026-09-10T00:06:33.252Z Record version: sha256:59329e2bab1c576f7631175b63964a4f906ed90d3a83559c4373acc0b13096af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-10-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/360/10/#sec-99-sec-materials) SEC content: yes ### Impairment or Disposal of Long-lived Assets #### SEC Staff Guidance ##### [360-10-S99-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-S99-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:33.252Z to 2026-09-10T00:06:33.252Z Record version: sha256:69c0c77adefdad694e352061526d0c4bafcc56a03bf3a70e6f3c52ef351b3882 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 5.B, Gain or Loss from Disposition of Equipment. - Facts: Company A has adopted the policy of treating gains and losses from disposition of revenue producing equipment as adjustments to the current year's provision for depreciation. Company B reflects such gains and losses as a separate item in the statement of income. - Question: Does the staff have any views as to which method is preferable? - Interpretive Response: Gains and losses resulting from the disposition of revenue producing equipment should not be treated as adjustments to the provision for depreciation in the year of disposition, but should be shown as a separate item in the statement of income. - If such equipment is depreciated on the basis of group of composite accounts for fleets of like vehicles, gains (or losses) may be charged (or credited) to accumulated depreciation with the result that depreciation is adjusted over a period of years on an average basis. It should be noted that the latter treatment would not be appropriate for (1) an enterprise (such as an airline) which replaces its fleet on an episodic rather than a continuing basis or (2) an enterprise (such as a car leasing company) where equipment is sold after limited use so that the equipment on hand is both fairly new and carried at amounts closely related to current acquisition cost. ##### [360-10-S99-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-S99-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:06:33.252Z to 2026-09-10T00:06:33.252Z Record version: sha256:135b6a5626991e5b8ed3eb86a231e4509f66592a245939e5a3c513ad2ccc9a57 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 5.CC, Impairments. - Standards for recognizing and measuring impairment of the carrying amount of long-lived assets including certain identifiable intangibles to be held and used in operations are found in FASB ASC Topic 360, Property, Plant, and Equipment. Standards for recognizing and measuring impairment of the carrying amount of goodwill and identifiable intangible assets that are not currently being amortized are found in FASB ASC Topic 350, Intangibles—Goodwill and Other. - Facts: Company X has mainframe computers that are to be abandoned in six to nine months as replacement computers are put in place. The mainframe computers were placed in service in January 20X0 and were being depreciated on a straight-line basis over seven years. No salvage value had been projected at the end of seven years and the original cost of the computers was $8,400. The board of directors, with the appropriate authority, approved the abandonment of the computers in March 20X3 when the computers had a remaining carrying value of $4,600. No proceeds are expected upon abandonment. Abandonment cannot occur prior to the receipt and installation of replacement computers, which is expected prior to the end of 20X3. Management had begun reevaluating its mainframe computer capabilities in January 20X2 and had included in its 20X3 capital expenditures budget an estimated amount for new mainframe computers. The 20X3 capital expenditures budget had been prepared by management in August 20X2, had been discussed with the company's board of directors in September 20X2 and was formally approved by the board of directors in March 20X3. Management had also begun soliciting bids for new mainframe computers beginning in the fall of 20X2. The mainframe computers, when grouped with assets at the lowest level of identifiable cash flows, were not impaired on a "held and used" basis throughout this time period. Management had not adjusted the original estimated useful life of the computers (seven years) since 20X0. - Question 1: Company X proposes to recognize an impairment charge under FASB ASC Topic 360 for the carrying value of the mainframe computers of $4,600 in March 20X3. Does Company X meet the requirements in FASB ASC Topic 360 to classify the mainframe computer assets as "to be abandoned?" - Interpretive Response: No. FASB ASC paragraph [360-10-35-47](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-47) provides that "a long-lived asset to be abandoned is disposed of when it ceases to be used. If an entity commits to a plan to abandon a long-lived asset before the end of its previously estimated useful life, depreciation estimates shall be revised in accordance with FASB ASC Topic 250, Accounting Changes and Error Corrections, to reflect the use of the asset over its shortened useful life." - Question 2: Would the staff accept an adjustment to write down the carrying value of the computers to reflect a "normalized depreciation" rate for the period from March 20X3 through actual abandonment (e. g., December 20X3)? Normalized depreciation would represent the amount of depreciation otherwise expected to be recognized during that period without adjustment of the asset's useful life, or $1,000 ($100/month for ten months) in the example fact pattern. - Interpretive Response: No. The mainframe computers would be viewed as "held and used" at March 20X3 under the fact pattern described. There is no basis under FASB ASC Topic 360 to write down an asset to an amount that would subsequently result in a "normalized depreciation" charge through the disposal date, whether disposal is to be by sale, abandonment, or other means. FASB ASC paragraph [360-10-35-43](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-43) requires the asset to be valued at the lower of carrying amount or fair value less cost to sell in order to be classified as "held for sale." For assets that are classified as "held and used" under FASB ASC Topic 360, an assessment must first be made as to whether the asset (asset group) is impaired. FASB ASC paragraph [360-10-35-17](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-17) indicates that an impairment loss shall be recognized only if the carrying amount of a long-lived asset (asset group) is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset (asset group) is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group). The staff would object to a write down of long-lived assets to a "normalized depreciation" value as representing an acceptable alternative to the approaches required in FASB ASC Topic 360. - The staff also believes that registrants must continually evaluate the appropriateness of useful lives assigned to long-lived assets, including identifiable intangible assets and goodwill. In the above fact pattern, management had contemplated removal of the mainframe computers beginning in January 20X2 and, more formally, in August 20X2 as part of compiling the 20X3 capital expenditures budget. At those times, at a minimum, management should have reevaluated the original useful life assigned to the computers to determine whether a seven year amortization period remained appropriate given the company's current facts and circumstances, including ongoing technological changes in the market place. This reevaluation process should have continued at the time of the September 20X2 board of directors' meeting to discuss capital expenditure plans and, further, as the company pursued mainframe computer bids. Given the contemporaneous evidence that management's best estimate during much of 20X2 was that the current mainframe computers would be removed from service in 20X3, the depreciable life of the computers should have been adjusted prior to 20X3 to reflect this new estimate. The staff does not view the recognition of an impairment charge to be an acceptable substitute for choosing the appropriate initial amortization or depreciation period or subsequently adjusting this period as company or industry conditions change. The staff's view applies also to selection of, and changes to, estimated residual values. Consequently, the staff may challenge impairment charges for which the timely evaluation of useful life and residual value cannot be demonstrated. - Question 3: Has the staff expressed any views with respect to company-determined estimates of cash flows used for assessing and measuring impairment of assets under FASB ASC Topic 360? - Interpretive Response: In providing guidance on the development of cash flows for purposes of applying the provisions of that Topic, FASB ASC paragraph [360-10-35-30](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-30) indicates that "estimates of future cash flows used to test the recoverability of a long-lived asset (asset group) shall incorporate the entity's own assumptions about its use of the asset (asset group) and shall consider all available evidence. The assumptions used in developing those estimates shall be reasonable in relation to the assumptions used in developing other information used by the entity for comparable periods, such as internal budgets and projections, accruals related to incentive compensation plans, or information communicated to others." - The staff recognizes that various factors, including management's judgments and assumptions about the business plans and strategies, affect the development of future cash flow projections for purposes of applying FASB ASC Topic 360. The staff, however, cautions registrants that the judgments and assumptions made for purposes of applying FASB ASC Topic 360 must be consistent with other financial statement calculations and disclosures and disclosures in MD&A. The staff also expects that forecasts made for purposes of applying FASB ASC Topic 360 be consistent with other forward-looking information prepared by the company, such as that used for internal budgets, incentive compensation plans, discussions with lenders or third parties, and/or reporting to management or the board of directors. - For example, the staff has reviewed a fact pattern where a registrant developed cash flow projections for purposes of applying the provisions of FASB ASC Topic 360 using one set of assumptions and utilized a second, more conservative set of assumptions for purposes of determining whether deferred tax valuation allowances were necessary when applying the provisions of FASB ASC Topic 740, Income Taxes. In this case, the staff objected to the use of inconsistent assumptions. - In addition to disclosure of key assumptions used in the development of cash flow projections, the staff also has required discussion in MD&A of the implications of assumptions. For example, do the projections indicate that a company is likely to violate debt covenants in the future? What are the ramifications to the cash flow projections used in the impairment analysis? If growth rates used in the impairment analysis are lower than those used by outside analysts, has the company had discussions with the analysts regarding their overly optimistic projections? Has the company appropriately informed the market and its shareholders of its reduced expectations for the future that are sufficient to cause an impairment charge? The staff believes that cash flow projections used in the impairment analysis must be both internally consistent with the company's other projections and externally consistent with financial statement and other public disclosures.