Accounting

FASB issues Statement no. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, which replaces no. 121—an earlier pronouncement on this topic. The new statement establishes a single accounting model for long-lived assets to be disposed of by sale. Under its provisions, which apply to both continuing and discontinued operations, companies must measure long-lived assets at the lower of fair value—minus cost to sell—or the carrying amount. As a result, they should no longer report discontinued operations at net realizable value or include in them operating losses that have not yet occurred.

Statement no. 144 is effective for financial statements issued for fiscal years beginning after December 15, 2001. FASB encourages early implementation. ( www.fasb.org/news/nr100301.html )