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We continue our miniseries exploring accounting for property, plant, and equipment. In this second episode we discuss the treatment of long-lived assets that are held for sale, from impairment to accounting for the sale of non-financial assets. Host Heather Horn is once again joined by Beth Paul, Deputy Chief Accountant in PwC’s National Office, to walk through specific considerations and complexities on this topic.

In this episode, you’ll hear:

00:22 – An overview of the impairment model for long-lived assets that are held for sale
02:05 – How to identify disposal groups
03:50 – A discussion of the order of impairment testing under the held for sale model
04:46 – What to consider when measuring impairment at the lower of carrying value or fair value less cost to sell
11:25 – A walkthrough of the accounting implications of AOCI and noncontrolling interest (NCI) in the held for sale model
16:05 – An explanation of differences between the sale of a business and the sale of an asset
18:00 - A discussion of accounting for the sale of nonfinancial assets

For more information, read chapter 5 of our Property, plant, equipment and other assets guide or listen to another podcast with further insights on this topic, Fixed asset toolkit: Assets held for sale. Additionally, follow this podcast on your favorite podcast app for more episodes.

Beth Paul is a Deputy Chief Accountant in PwC’s National Office responsible for a team of consultants that specialize in business combinations and related areas, such as consolidations, disposals, impairments, and segment reporting.

Heather Horn is the PwC National Office Sustainability & Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

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