Wiley GAAP 2014: Interpretation and Application of Generally Accepted Accounting Principles

25   ASC 360 PROPERTY, PLANT, AND EQUIPMENT

Perspective and Issues

Subtopic

Scope and Scope Exceptions

Overview

ASC 360-10, Overall

Comparison of Accounting and Impairment Rules

ASC 360-20, Real Estate Sales

Definitions of Terms

Concepts, Rules, and Examples

Property, Plant, and Equipment

Cost considerations - Initial acquisition

Cost considerations - postacquisition

Real estate special assessments

Depreciation and depletion

Example of straight-line depreciation

Example of double-declining balance depreciation

Example of sum-of-the years' digits (SYD) depreciation

Example of partial-year depreciation

Example of depletion

Impairment and disposal

Example of impairment

Example of long-lived assets to be disposed of by sale

Real Estate Sales Other Than Retail Land Sales

Scope

Criteria for using full accrual method

Example determining adequacy of initial investment

Methods of Accounting for Real Estate Sales other than Retail Land Sales

Selection of method

Full accrual method

Installment method

Example of the installment method

Cost recovery method

Example of the cost recovery method

Deposit method

Example of a deposit transaction

Reduced profit method

Example of the reduced profit method

Other Guidance in Accounting for Real Estate Transactions

PERSPECTIVE AND ISSUES

Subtopic

ASC 360, Property, Plant, and Equipment, consists of two subtopics:

• ASC 360-10, Overall, which is further divided into two subsections:
  1. General, which provides guidance on accounting and reporting on property, ...