ASC

ASC 360-942

Financial Services—Depository and Lending

360 Property, Plant, and Equipment

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In brief

IntermediatePresentationDisclosureInventory and PP&EIndustry-specific

This Subtopic addresses how depository and lending institutions (banks, savings institutions, credit unions) present property, plant, and equipment in their financial statements. Premises and equipment are generally reported as a single balance sheet caption, net of accumulated depreciation and amortization, with the accumulated amount shown on the face of the balance sheet or in the notes. Net gains or losses on disposition of premises and equipment go into noninterest income or noninterest expense rather than a separate line.

Key points (5)
  • Premises and equipment are generally shown as a single caption on the balance sheet, net of accumulated depreciation and amortization (360-942-45-1).
  • The amount of accumulated depreciation and amortization must be presented either on the face of the balance sheet or disclosed in the notes (360-942-45-1; 360-942-50-1).
  • Net gains or net losses on dispositions of premises and equipment are included in noninterest income or noninterest expense (360-942-45-2).
  • The Subtopic addresses only financial statement presentation of financial institution property, plant, and equipment (360-942-05-1).
  • Scope follows the Overall Subtopic scope for depository and lending institutions in Section 942-10-15 (360-942-15-1).

For students. This is a short, presentation-only Subtopic: recognition, measurement, depreciation, and impairment of bank premises still follow ASC 360-10. The common trap is forgetting that disposal gains/losses for a bank land in noninterest income or expense, not in a separate "gain on sale" line or in interest income.

premises and equipmentaccumulated depreciation and amortizationsingle balance sheet captionnoninterest incomenoninterest expensedisposition gains and lossesdepository and lending institutions

Machine-generated study aid for ASC 360-942. Check the source paragraphs below.

360-942-00Status

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360-942-00-1
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
942-360-45-1AmendedAccounting Standards Update No. 2020-1010/29/2020
942-360-50-1AddedAccounting Standards Update No. 2020-1010/29/2020

360-942-05Overview and Background

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360-942-05-1
This Subtopic provides guidance concerning the financial statement presentation of financial institution property, plant, and equipment.

360-942-15Scope and Scope Exceptions

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Overall Guidance

360-942-15-1
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 942-10-15.

360-942-45Other Presentation Matters

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Premises and Equipment

360-942-45-1
Premises and equipment are generally shown as a single caption on the balance sheet, net of accumulated depreciation and amortization, the amount of which shall be presented on the face of the balance sheet or disclosed in the notes to financial statements. (See paragraph 942-360-50-1.)
360-942-45-2
For premises and equipment, net gains or net losses on dispositions shall be included in noninterest income or noninterest expense.

360-942-50Disclosure

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360-942-50-1
Premises and equipment are generally shown as a single caption on the balance sheet, net of accumulated depreciation and amortization, the amount of which shall be presented on the face of the balance sheet or disclosed in the notes to financial statements. (See paragraph 942-360-45-1.)

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