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Reasons for issuing FASB Statement No.144

Analyze the reason(s) for issuing FASB Statement No. 144 and compare and contrast the accounting information on this statement, Statement No. 121, and Accounting Principles Board Opinion (APB) # 30.

(1) Analysis of the reason(s) for issuing FASB Statement No. 144
(2) Differences among FASB Statement No. 144, Statement No. 121, and Accounting Principles Board Opinion (APB) # 30
(3) Impact of the changes to Statement No. 144 on financial reporting

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(1).Analysis of the reason(s) for issuing FASB Statement No. 144

The Financial Accounting Standards Board (FASB) Statement No. 144 "Accounting for the Impairment or Disposal of Long-Lived Assets" was issued in August 2001 to "addresses financial accounting and reporting for the impairment or disposal of long-lived assets. This Statement supersedes:

- FASB Statement No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets" (Disposed Of) - The accounting and reporting provisions of APB Opinion No. 30, Reporting the Results of Operations-Reporting the Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring Events and Transactions, for the disposal of a segment of a business (as previously defined in that Opinion).
- Also amends ARB No. 51, Consolidated Financial Statements, to eliminate the exception to consolidation for a subsidiary for which control is likely to be temporary.

* The reasons for issuing No. 144 is:

Because Statement 121 did not address the accounting for a segment of a business accounted for as a discontinued operation under Opinion 30, two accounting models existed for long-lived assets to be disposed of. The Board decided to establish a single accounting model, based on ...

Solution Summary

This solution discusses reasons for issues FASB Statement No. 144.