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FASB ASC Guide > FASB ASC 360

The Financial Accounting Standards Board (FASB) released the 300 section of the Accounting Standards Codification for the purpose of discussing the braod topic of Assets. Accounting Standards Codification 360 (ASC 360) was released to address the more specific topic of property, plant, and equipment – also known as fixed assets.

Fixed assets are grouped into four main categories as shown below:

• Land and land improvements
• Buildings
• Machinery and equipment
• Furniture and fixtures.

In addressing these areas, it goes further into discussion of the following topics which are relevant to fixed assets.

• Impairment or Disposal of Long-Lived Assets
• Historical Cost/Fair Value Option
• Depreciation Methods
• Grouping based on Held for Sale criteria
• Asset Retirement Obligations
• XBRL Relationships
• Presentation and Disclosure of items

As you can see, while Property, Plant & Equipment is a fairly easy to understand area for accountants, it can quickly become much more complex when certain assets and transactions enter the mix. Furthermore, almost every company maintains property, plant, and equipment in some form or another – much of which is a significant portion of the balance sheet. It is for this reason that FASB ASC 360 is such an important standard to know inside and out.

*Recording the sale of land
*Presentation of Land at Historical Cost

Check out more high level explanations of the FASB ASC in our Guide to the Accounting Standards Codification!

For more in depth information on this and other FASB ASC topics, check out the following books.