For intangibles and long-lived assets
, areas in which we lack training in verification procedures, they could be reclassified as "non-verifiable assets.
The accounting model for long-lived assets
to be disposed of by sale applies to all such assets, including discounted operations, and replaces the provisions of APB Opinion No.
In the absence of reasonably arrived at market values, a valuation technique would require breaking down specific long-lived assets
to the lowest possible level and applying the cash flow generated on a pro rata basis.
Information needed for assessing carrying amounts of long-lived assets
is more complex than for current assets.
Therefore, a company should begin assessing whether there are any contractual arrangements or legal requirements associated with the ultimate retirement of its tangible long-lived assets
For many years, companies and other entities accounted for the disposal or expected disposal of long-lived assets
that were a segment of a business using one set of rules and the disposal of long-lived assets
that were not a segment of a business using another standard.
However, if the tenant uses the funds to purchase long-lived assets
, such as tenant improvements, the deduction must be spread over a period of time.
Accounting for impairments of long-lived assets
is an area virtually devoid of authoritative guidance.
SFAS 144 also does not change the provisions established for accounting for long-lived assets
in SFAS 44, Accounting for Intangible Assets of Motor Carriers, SFAS 50, Financial Reporting in the Record and Music Industry, and SFAS 63, Financial Reporting by Broadcasters.
The new statement establishes a single accounting model for long-lived assets
to be disposed of by sale.
It also proposes to add another new Item 302(d) of Regulation S-K to elicit certain information concerning tangible and intangible long-lived assets
and related accumulated depreciation, depletion and amortization.
After deliberating the issue, FASB extended its conclusions to other industries with similar liabilities arising from the development and early operations of some long-lived assets