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The prevailing presentation and disclosure guidance related to assets comes from US GAAP and is applicable to all reporting entities. The primary authoritative guidance is listed below for each type of asset. If there is other guidance applicable to a specific asset type, it is noted in the applicable section.
ASC 310, Receivables
ASC 330, Inventory
ASC 340, Other Assets and Deferred Costs
ASC 350, Intangibles – Goodwill and Other
ASC 360, Property, Plant, and Equipment
S-X 5-02 applies only to SEC registrants, and provides guidance on certain assets that are required to be presented as individual balance sheet line items, if material.
New guidance
In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. This guidance introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The ASU also provides updated guidance regarding the impairment of available-for-sale debt securities and includes additional disclosure requirements. The new guidance is effective for public business entities that are SEC filers, excluding entities eligible to be smaller reporting companies (SRCs) as currently defined by the SEC, for fiscal years beginning after December 15, 2019 (including interim periods). For SRCs and all other entities, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, including interim periods. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. For additional information on the effective dates of ASU 2016-13, refer to LI 13.1 (Figure LI 13-2).
In June 2016, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. This guidance eliminates Step 2 of the current goodwill impairment test, which requires a hypothetical purchase price allocation to measure goodwill impairment. ASU 2017-04 includes a new requirement to disclose the amount of goodwill allocated to reporting units with zero or negative carrying amounts and the segment in which the reporting unit is included. ASU 2017-04 is effective for public business entities that are SEC filers, excluding entities eligible to be smaller reporting companies as defined by the SEC, for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019. An entity that adopts ASU 2017-04 must apply the revised impairment model for all goodwill impairment tests within that fiscal year. For example, a calendar year-end public business entity that is an SEC filer must apply the revised guidance effective January 1, 2020 even if the company’s annual goodwill impairment testing date is not until later in the calendar year (e.g., October 1). All other entities that have not elected the private company alternative for goodwill will be required to apply the guidance in fiscal years beginning after December 15, 2022. Early adoption is permitted. Early adoption in a fiscal year is precluded if an impairment test earlier in that fiscal year applied the former impairment guidance.
In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This guidance addresses how reporting entities should account for implementation costs performed in a cloud computing arrangement that is a service contract (see SW 4). ASU 2018-15 is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Early adoption is permitted, including adoption in any interim period for which financial statements have not been issued.
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