Pack It Up, Pack It In: Accounting for Exit and Disposal Costs Under ASC 420

Overview

Accounting Standards Codification (ASC) Topic No. 420, Exit or Disposal Cost Obligations, provides guidance on accounting for certain events when winding down companies or discontinuing operations. While the accounting can be complex, this course offers an overview of ASC 420's rules for proper recognition, measurement, and disclosure of key wind-down elements and events like employee termination benefits, contract terminations, facility closures, and related exit and disposal activities. This course focuses on the details of ASC 420 and fundamentals you need to jump into applying ASC 420 guidance.

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Objectives

  • Recall the scope and objectives of ASC 420 for exit and disposal activities
  • Distinguish between one-time and ongoing termination benefits
  • Apply recognition and measurement guidance for one-time employee termination benefits
  • Explain the recognition and measurement rules for contract termination and other wind-down costs
  • Identify presentation and disclosure requirements for ASC 420 activities
  • Recognize scenarios where ASC 420 applies and determine proper accounting treatment

Designed For:

Practicing CPAs both in public accounting and business and industry -- controllers, accountants, and other financial accounting personnel


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Course Information

Adding additional credit may change exam requirements.

Advanced Preparation: None