FASB Statement No. 144 Replaces No. 121.

• Author: Heffes, Ellen M.
• Position: Domestic - Financial Accounting Standards Board - Brief Article

The FASB released Statement No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, to replace FASB Statement No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of.

The project's primary goals were to develop one accounting model, based on the framework established in Statement 121, for disposing long-lived assets by sale and to address significant implementation issues.

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. 30, Reporting Results of Operations--Reporting the Effects of Disposal of a Segment of a Business, for the disposal of segments of a business.

Statement 144 requires that those long-lived assets be measured at the lower of carrying amount or fair value less cost to sell, whether reported in continuing operations or in discounted operations. Thus, discounted...