tailieunhanh - Accountants’ Handbook Special Industries and Special Topics 10th Edition_3

Tham khảo tài liệu 'accountants’ handbook special industries and special topics 10th edition_3', tài chính - ngân hàng, kế toán - kiểm toán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 28 34 REAL ESTATE AND CONSTRUCTION 2. Gross Cash Flow Analysis. An entity that detects one or more of the indicators discussed above should evaluate whether the sum of the expected future net cash flows undiscounted and without interest charges associated with an asset to be held and used is at least equal to the asset s carrying amount. The FASB imposed a high threshold for triggering the impairment analysis. The selection of a cash flow test based on undiscounted amounts will trigger the recognition of an impairment loss less frequently than would a test based on fair value. 3. Measurement. For assets to be held and used the Statement requires an impairment loss to be measured as the amount by which the carrying amount of the impaired asset exceeds its fair value. The distinction between the recognition process which uses undiscounted cash flows and the measurement process which uses fair value or discounted cash flows is significant. As a result of a relatively minor change in undiscounted cash flows the impairment measurement process might kick in thus causing the balance sheet amount to drop off suddenly in any period in which undiscounted cash flows fall below a long-lived asset s carrying amount. Once assets to be held and used are written down the Statement does not permit them to be written back up. Thus a new depreciable cost basis is established after a writedown and subsequent increases in the value or recoverable cost of the asset may not be recognized until its sale or disposal. In addition an asset that is assessed for impairment should be evaluated to determine whether a change to the useful life or salvage value estimate is warranted under APB Opinion No. 20 Accounting Changes. SFAS No. 144 thus forces entities to immediately record a loss on an impaired asset instead of shortening the depreciable life or decreasing the salvage value of the asset. b ASSETS TO BE DISPOSED OF. SFAS No. 144 requires long-lived assets held for sale to be reported at .