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Held for Sale Measurement CalculatorFair Value Less Cost to Sell

What do these figures come to once the work is shown?

Lower of carrying amount and fair value less cost to sell at classification, and the later gain limited to losses already recognized.

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Your figures
Example figuresIllustrative only. Type over them with your own.
Loss on classification
$550,000
Write-down to fair value less cost to sell
Measured amount (lower of carrying amount and FV less cost to sell)
$4,450,000
Fair value less cost to sell
$4,450,000
Drawn to one scale
Loss on classification$550,000
Measured amount (lower of carrying amount and FV less cost to sell)$4,450,000
Fair value less cost to sell$4,450,000
Later gain allowed (limited to losses recognized)$250,000
All results
MeasureResult
Loss on classification$550,000
Measured amount (lower of carrying amount and FV less cost to sell)$4,450,000
Fair value less cost to sell$4,450,000
Later gain allowed (limited to losses recognized)$250,000
Later loss—
How this was worked out
Work shownrecomputed as you type
Measured amount = min(carrying amount, fair value - costs to sell)
Loss = carrying amount - measured amount
Later gain = increase in FV less cost to sell, limited to cumulative losses recognized

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Measured amount = min(carrying amount, fair value - costs to sell)
  • Loss = carrying amount - measured amount
  • Later gain = increase in FV less cost to sell, limited to cumulative losses recognized

How it works

ASC 360-10-35-43 measures a long-lived asset or disposal group classified as held for sale at the lower of its carrying amount or fair value less cost to sell. Depreciation and amortization stop while it is held for sale.

ASC 360-10-35-40 recognizes a gain for a later increase in fair value less cost to sell, but not above the cumulative loss previously recognized. ASU 2014-08 governs when such a disposal is also a discontinued operation.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Is the long-lived asset impairment test run first?

An expected sale well before the end of useful life is an impairment indicator under ASC 360-10-35-21, so recoverability may be tested before classification. At classification, assets in the disposal group outside ASC 360 are adjusted under their own guidance first, then the group is measured.

Do I keep depreciating?

No. Depreciation stops once the held-for-sale criteria are met.

What counts as costs to sell?

Incremental direct costs such as broker commissions, legal and title transfer fees, and closing costs.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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