Wiley GAAP 2019

26ASC 360 PROPERTY, PLANT, AND EQUIPMENT

PERSPECTIVE AND ISSUES

Subtopics

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

• ASC 360-10, Overall, which is further divided into two subsections:
  • General, which provides guidance on accounting and reporting on property, plant, and equipment, including accumulated depreciation
  • Impairment or disposal of long-lived assets, which contains guidance for:
    • Recognizing impairment of long-lived assets to be held and used,
    • Long-lived assets to be disposed of by sale, and
    • Disclosures for the implementation and disposals of individually significant components of an entity.
• ASC 360-20, Real Estate Sales, which provides guidance on the sale of real estate other than retail land. Upon adoption of ASU 2014-09, Revenue from Contracts with Customers, the title of Subtopic 360-20 will be amended to Property, Plant, and Equipment—Real Estate Sales—Sale Leaseback Accounting. This subtopic is superseded upon adoption of ASU 2016-02, Leases.

Overview

Property, plant, and equipment (sometimes referred to as “fixed assets,” “tangible long-lived assets,” or “plant assets”) are tangible property used in a productive capacity that will benefit the reporting entity for a period exceeding one year. They include land, buildings, machinery, furniture, and tools. Items of property, plant, and equipment are used in the ordinary course of business. They are not for resale. Property, plant, and equipment are some of the most significant items ...