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In March of 1995 the Financial Accounting Standards Board issued Statement No. 121 "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of". The statement established accounting standards for the impairment of long-lived assets, certain identifiable intangibles, and goodwill related to those assets to be held and used. The statement also established accounting standards for the disposal of long-lived assets and certain identifiable intangibles. (fasb.org/stsum121) However, shortly after Statement 121 was released numerous implementation issues were identified. Statement 121 also created measurement and presentation differences in the accounting for long-lived assets to be disposed of within the scope of Statement 121, and those under APB Opinion No. 30, "Reporting the Results of Operations-Reporting the Effects of Disposal of a Segment of a Business". (BDO Seidman) Statement 121 did not address the accounting for a segment of a business accounted for as a discontinued operation under Opinion 30, therefore businesses accounted for the disposal or expected disposal of long-lived assets that were a segment of a business using one set of rules and the disposal of long-lived assets that were not a segment of a business using another standard. (Meeting and Luecke)
In order to resolve these problems the Board issued Statement 144 entitled "Accounting for the Impairment or Disposal of Long-Lived Assets" in late September 2001, effective for fiscal years beginning after December 15, 2001. The board felt that the issuance of Statement 144 provided a single accounting model for long-lived assets to be disposed of by sale that would eliminate the differences in accounting for th ...