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SFAS 121: The FASB's new standard for impairment of long‐lived assets
Author(s) -
Baskin Dorsey L.
Publication year - 1995
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.3970060402
Subject(s) - accounting , business , profit (economics) , disposition , statement (logic) , asset (computer security) , write off , actuarial science , economics , public economics , law , political science , computer science , microeconomics , psychology , social psychology , computer security , tax reform , state income tax , gross income
The FASB has before addressed the issue of asset impairment in many different standards but perhaps none so broadly as in Statement No. 121. When should long‐lived assets and intangibles be written down and by how much? How should assets to be disposed of be accounted for until disposition and should they continue to be depreciated? These are issues addressed by the FASB in this new standard, soon to become effective for all enterprises, including not‐for‐profit enterprises, and most long‐lived assets.