Define and discuss accounting for asset retirement obligations under SFAS No.14FASB ASC 410-20.

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The Answer is According to the provisions of SFAS No.144 Long-lived assets to be disposed of other than by sale,such as those to be abandoned,exchanged for a similar productive asset,or distributed to owners in a spin-off,are to be considered held and used until disposed of.Additionally,in order to resolve implementation issues,the depreciable life of a long-lived asset to be abandoned was to be revised in accordance with the criteria originally established in APB Opinion No.20,"Accounting Changes" Since rescinded).The accounting treatment for long-lived assets to be disposed of by sale is used for all long-lived assets,whether previously held and used or newly acquired FASB ASC 360-10-35).That treatment retains the requirement originally outlined in SFAS No.121 to measure a long-lived asset classified as held for sale at the lower of its carrying amount or fair value less cost to sell and to cease depreciation amortization).As a result,discontinued operations are no longer measured on a net realizable value basis,and future operating losses are no longer recognized before they occur.In summary,SFAS No.144 retained the requirements of SFAS No.121 to recognize an impairment loss only if the carrying amount of a long-lived asset is not recoverable from its undiscounted cash flows.This loss is measured as the difference between the carrying amount and fair value of the asset FASB ASC 360-10-35-17).

Define and Discuss Accounting for Asset Retirement Obligations Under SFAS