What does held for sale mean on the CPA exam?
Held for sale. A classification for a component the entity is actively marketing and expects to sell within a year. It stops being depreciated and is carried at the lower of carrying amount or fair value less cost to sell.
Defined against ASC 360-10-45-9.
Which CPA exam sections use held for sale?
Held for sale appears in the FAR section of the CPA exam.
Other terms defined against ASC 360-10
- carrying amount: What an asset or liability is currently shown at on the balance sheet: its original amount adjusted for depreciation, amortization, impairment or accrual.
- impairment: Writing an asset down because its carrying amount can no longer be recovered.
Related terms
- continuing operations: Everything the entity still does, as opposed to a component it has disposed of or classified as held for sale.
- net realizable value: Estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation.
- asset acquisition: Buying a group of assets that does not amount to a business.
- asset retirement obligation: A legal obligation associated with the retirement of a tangible long-lived asset, recognized at fair value in the period incurred, with an equal asset retirement cost capitalized into the asset.
- accelerated filer: A public company with public float of at least 75 million dollars that has been reporting for at least a year.
- step-up in basis: Resetting inherited property's basis to its fair market value at the date of death, which erases the unrealized gain of the decedent's lifetime.