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Wiley GAAP 2020
book

Wiley GAAP 2020

by Joanne M. Flood
February 2020
Intermediate to advanced content levelIntermediate to advanced
1456 pages
52h 54m
English
Wiley
Content preview from Wiley GAAP 2020

29ASC 420 EXIT OR DISPOSAL COST OBLIGATIONS

PERSPECTIVE AND ISSUES

Subtopic

ASC 420, Exit or Disposal Cost Activities, consists of one subtopic:

  • ASC 420-10, Overall, which provides guidance on the definition, reporting, and disclo- sure of such costs.

Scope and Scope Exceptions

ASC 420 applies to all entities. It does not apply to:

  • Costs associated with the retirement of a long-lived asset covered by ASC 410-20
  • Impairment of an unrecognized asset while it is being used

    (ASC 420-10-15-5)

ASC 420-10-15-4 clarifies that an exit activity includes, but is not limited to:

  • A restructuring
  • The sale or termination of a line of business
  • The closure of business activities in a particular location
  • The relocation of business activities
  • Changes in management structure
  • A fundamental reorganization that affects the nature and focus of operation

DEFINITIONS OF TERMS

Source: ASC 420-10-20. Also see Appendix A, Definitions of Terms, for: Acquiree, Acquirer, Acquisition by a Not-for-Profit Entity, Business, Business Combination, ...

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Publisher Resources

ISBN: 9781119652625