![]() ![]() As discussed in ASC 350-30-55-1C, these instances will likely be limited to situations in which the reporting entity’s own assumptions regarding the period over which the asset is expected to contribute to future cash flows differ from those that would be assumed by market participants in valuing the asset. This is because there may be a difference between the useful life of the asset used for amortization and the period of expected cash flows used to measure the fair value of the asset from a market participant perspective. ![]() If this is the case, it is important that the market-participant assumptions be adjusted to consider entity-specific factors. This guidance also directs a reporting entity to consider the assumptions that market participants would use about renewals or extensions (consistent with the highest and best use of the asset by market participants) if it lacks entity-specific experience. One of the considerations in ASC 350-30-35-3 for determining useful life refers to the consideration of the entity’s own historical experience in renewing or extending similar arrangements. Transfers and servicing of financial assets Revenue from contracts with customers (ASC 606) Loans and investments (post ASU 2016-13 and ASC 326) Investments in debt and equity securities (pre ASU 2016-13) Insurance contracts for insurance entities (pre ASU 2018-12) Insurance contracts for insurance entities (post ASU 2018-12) IFRS and US GAAP: Similarities and differences Business combinations and noncontrolling interestsĮquity method investments and joint ventures ![]()
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