1st Edition

ISBN: 9781264920532

Author: SPICELAND

Publisher: MCG

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Chapter 11, Problem 11.9DMP

Research Case 11–9

FASB codification; locate and extract relevant information and cite authoritative support for a financial reporting issue; impairment of property, plant, and equipment and intangible assets

• LO11–8

The company controller, Barry Melrose, has asked for your help in interpreting the authoritative accounting literature that addresses the recognition and measurement of impairment losses for property, plant, and equipment and intangible assets. “We have a significant amount of goodwill on our books from last year’s acquisition of Churchill Corporation. Also, I think we may have a problem with the assets of some of our factories out West. And one of our divisions is currently considering disposing of a large group of depreciable assets.”

Your task as assistant controller is to research the issue.

Required:

1. Obtain the relevant authoritative literature on accounting for the impairment of property, plant, and equipment and intangible assets using the FASB Accounting Standards Codification. You might gain access at the FASB website (www.fasb.org). Cite the reference locations regarding impairment of property, plant, and equipment and intangible assets.
2. When should property, plant, and equipment and finite-life intangible assets be tested for impairment?
3. Explain the process for measuring an impairment loss for property, plant, and equipment and finite-life intangible assets to be held and used.
4. What are the specific criteria that must be met for an asset or asset group to be classified as held-for-sale? What is the specific citation reference from the FASB Accounting Standards Codification that contains these criteria?
5. Explain the process for measuring an impairment loss for property, plant, and equipment and finite-life intangible assets classified as held-for-sale.

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Chapter 11, Problem 11.8DMP

Chapter 11, Problem 11.10DMP

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Chapter 11 Solutions

INTERMEDIATE ACCOUNTING

Ch. 11 - Prob. 11.1Q Ch. 11 - Depreciation is a process of cost allocation, not...Ch. 11 - Identify and define the three characteristics of...Ch. 11 - Discuss the factors that influence the estimation...Ch. 11 - What is meant by depreciable base? How is it...Ch. 11 - Prob. 11.6Q Ch. 11 - Prob. 11.7Q Ch. 11 - Why are time-based depreciation methods used more...Ch. 11 - Prob. 11.9Q Ch. 11 - Prob. 11.10Q

Ch. 11 - Briefly explain the differences and similarities...Ch. 11 - Prob. 11.12Q Ch. 11 - Prob. 11.13Q Ch. 11 - What are some of the simplifying conventions a...Ch. 11 - Explain the accounting treatment required when a...Ch. 11 - Explain the accounting treatment and disclosures...Ch. 11 - Explain the steps required to correct an error in...Ch. 11 - Prob. 11.18Q Ch. 11 - Prob. 11.19Q Ch. 11 - Prob. 11.20Q Ch. 11 - Prob. 11.21Q Ch. 11 - Briefly explain the differences between U.S. GAAP...Ch. 11 - Under U.S. GAAP, litigation costs to successfully...Ch. 11 - Cost allocation At the beginning of its fiscal...Ch. 11 - Prob. 11.4BE Ch. 11 - Prob. 11.5BE Ch. 11 - Prob. 11.8BE Ch. 11 - Prob. 11.10BE Ch. 11 - Prob. 11.11BE Ch. 11 - Prob. 11.12BE Ch. 11 - Prob. 11.13BE Ch. 11 - Impairment; property, plant, and equipment LO118...Ch. 11 - Prob. 11.18BE Ch. 11 - IFRS; impairment; property, plant, and equipment ...Ch. 11 - Prob. 11.20BE Ch. 11 - Prob. 11.21BE Ch. 11 - IFRS; impairment; goodwill LO1110 IFRS Refer to...Ch. 11 - Subsequent expenditures LO119 Demmert...Ch. 11 - Prob. 11.1E Ch. 11 - Prob. 11.2E Ch. 11 - Prob. 11.3E Ch. 11 - Prob. 11.4E Ch. 11 - Depreciation methods; solving for unknowns LO112...Ch. 11 - Prob. 11.10E Ch. 11 - Prob. 11.12E Ch. 11 - Prob. 11.13E Ch. 11 - Prob. 11.15E Ch. 11 - Prob. 11.16E Ch. 11 - Prob. 11.26E Ch. 11 - Impairment; property, plant, and equipment LO118...Ch. 11 - IFRS; impairment; property, plant, and equipment ...Ch. 11 - Prob. 11.30E Ch. 11 - Prob. 11.31E Ch. 11 - Prob. 11.32E Ch. 11 - Prob. 11.33E Ch. 11 - FASB codification research LO118 The FASB...Ch. 11 - Prob. 11.35E Ch. 11 - Subsequent expenditures LO119 Belltone Company...Ch. 11 - Concept s; terminology LO111 through LO116, LO118...Ch. 11 - Depreciation methods; change in methods LO112,...Ch. 11 - Prob. 11.6P Ch. 11 - Prob. 11.7P Ch. 11 - Prob. 11.10P Ch. 11 - Prob. 11.12P Ch. 11 - Prob. 11.14P Ch. 11 - Analysis Case 111 Depreciation, depletion, and...Ch. 11 - Communication Case 112 Depreciation LO111 At a...Ch. 11 - Judgment Case 113 Straight-line method; composite...Ch. 11 - Prob. 11.4DMP Ch. 11 - Prob. 11.8DMP Ch. 11 - Research Case 119 FASB codification; locate and...Ch. 11 - Prob. 11.11DMP Ch. 11 - Real World Case 1115 Depreciation and depletion...Ch. 11 - Prob. 11.16DMP Ch. 11 - Target Case LO112, LO118, LO119 Target...

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Solution Summary: The author explains the Financial Accounting Standards Board (FASB), which is an independent board of accounting professionals overseeing the creation of financial statements.

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