Читать книгу Auditing Employee Benefit Plans - Josie Hammond - Страница 67

GAAP requires operating assets, such as buildings, furniture, fixtures, and leasehold improvements, to be reported at cost, less accumulated depreciation and amortization. However, Form 5500 requires assets to be reported at current (or fair) value. Therefore, a note disclosure may be required to reconcile the difference. In addition, operating assets should be reviewed for potential impairment.

Help desk. FASB ASC 360, Property, Plant, and Equipment, addresses accounting standards for the impairment of long-lived assets for assets to be held and used and assets to be disposed of. FASB ASC 360-10-35-21 requires that long-lived assets to be held and used by the plan, such as real estate owned by the plan for plan operations, be tested for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Long-lived assets to be abandoned or exchanged for a similar productive asset should be considered held and used until disposed of. FASB ASC 360-10-35-43 states that long-lived assets classified as held for sale should be measured at the lower of its carrying amount or fair value, less cost to sell. A long-lived asset should not be depreciated while it is held for sale.