Fixed Asset

(redirected from Long-Lived Asset)
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Fixed Asset

Property, such as machinery or buildings, utilized in a business that will not be used or liquidated during the current fiscal period.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
As a result, the company recognized pre-tax charges of $121 million during the third quarter of fiscal 2018 associated with long-lived asset impairment and severance obligations.
In the process of creating economic value, business entities typically use a variety of long-lived assets. Frequently, it makes economic sense for an entity to lease--rather than own--the equipment, buildings, and other long-lived assets it uses.
If the assets are used in the operating period in which they are received, a corresponding expense will be provided; otherwise, long-lived assets will be placed on the organization's statement of financial position (balance sheet) and subsequently accounted for as any purchased asset would be.
Thus, for accounting purposes, it would be wasteful for an entity to continually reappraise the value of all of its long-lived assets simply to account for those that may be impaired.
144, the FASB acknowledges that a PV technique is commonly used to measure the fair value of long-lived assets. Let's now focus on DCF because of its widespread use in measuring fair value for intangible and long-lived assets.
Paragraph 27: 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 [begin strikethrough] for a similar productive long lived asset[end strikethrough], or in a distribution to owners in a spinoff) shall continue to be classified as held and used until it is disposed of.
"Where, as in the facts of section 10.01 of the proposed procedure, the IRS is proposing an adjustment for improperly deducted capital expenditures for noninventory property (i.e., repairs made to a building or other similarly long-lived asset), it is difficult to see how there is any "method" of accounting to be changed.
As managers contemplate the adoption of SFAS 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of," most will be considering the impact of these new requirements on their particular reporting situations.(1) The FASB's intent in issuing SFAS 121 was to restrict a firm's opportunities to record long-lived asset writedowns.
The $280 million in pre-tax charges recognized in the third quarter and referenced above related to this strategic reassessment, and included the following: $123 million of accelerated depreciation and amortization, lease and severance obligations, and other costs related to the decision to close all Orchard Supply Hardware locations; $121 million of long-lived asset impairment and severance obligations related to the decision to close certain underperforming stores in the U.S.
* the impairment of long-lived asset (including identifiable intangibles and goodwill) which are to be held and used.
In addition, Pathmark booked a $2.2 million pretax charge for impairment of a long-lived asset. Partially offsetting the expense items was a $5.5 million gain on the sale of real estate.