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

Regulation 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.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 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 for the impairment of available-for-sale debt securities and includes additional disclosure requirements. Subsequent to the issuance of this standard, the FASB issued additional ASUs amending and clarifying the guidance based on feedback from constituents and discussions of the Transition Resource Group.

The new guidance is effective for smaller reporting companies (SRCs) and entities other than public business entities 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. The new presentation and disclosure guidance in ASU 2016-13 has not been reflected in this chapter but is included in LI 12.

In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 eliminates the accounting guidance for TDRs in ASC 310-40, Receivables - Troubled Debt Restructurings by Creditors, and introduces new disclosure requirements. The elimination of TDRs can only be applied by entities that have adopted the CECL model in ASU 2016-13. For entities that have not adopted ASU 2016-13, the TDR guidance remains applicable until they adopt ASU 2016-13. The presentation and disclosure requirements of ASU 2022-02 are covered in LI 12 and are not discussed in this guide.

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. 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.