4.1 Overview
ASC 360-10
45-15 A long-lived asset to be
disposed of other than by sale (for example, by abandonment,
in an exchange measured based on the recorded amount of the
nonmonetary asset relinquished, or in a distribution to
owners in a spinoff) shall continue to be classified as held
and used until it is disposed of. The guidance on long-lived
assets to be held and used in Sections 360-10-35, 360-10-45,
and 360-10-50 shall apply while the asset is classified as
held and used. If a long-lived asset is to be abandoned or
distributed to owners in a spinoff together with other
assets (and liabilities) as a group and that disposal group
meets the conditions in paragraphs 205-20-45-1A through
45-1C to be reported in discontinued operations, paragraphs
205-20-45-3 through 45-5 shall apply to the disposal group
at the date it is disposed of.
A long-lived asset (or a group of assets) may be disposed of in ways
other than by sale, such as by abandonment, in an exchange measured on the basis of
the recorded amount of the nonmonetary asset relinquished (i.e., a nonmonetary
exchange), or in a distribution to owners in a spin-off. Assets to be disposed of
other than by sale should continue to be classified as held and used until they are
disposed of. Upon disposal, entities must assess whether the disposed-of assets
qualify for discontinued-operations reporting. If not, the entity should apply the
presentation and disclosure requirements in ASC 360-10 (see Chapter 6). If so, the entity
should apply the presentation and disclosure requirements in ASC 205-20 (see
Chapter 7).
Because assets to be disposed of other than by sale are classified
as held and used until they are disposed of, the operations and any incremental
direct costs (e.g., advisory fees or legal fees) that are incurred in connection
with the disposal cannot be reported in discontinued operations until the disposal
group is abandoned or otherwise disposed of even if the disposal would otherwise
qualify for discontinued-operations reporting.