Date of Defense

Spring 4-2-1998



First Advisor

Lisa Martin, Accountancy

Second Advisor

Jerry Kreuze, Accountancy

Third Advisor

Sheldon Langsam, Accountancy


As managers contemplate the adoption of SFAS 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of, most will be considering the impact of these new requirements on their particular reporting situation. This effect is important to managers because whenever the Financial Accounting Standards Board (FASB) issues a new statement, financial statements need to be in compliance with Generally Accepted Accounting Principles (GAAP). New requirements also cause tax and auditing concerns, effects on financial statement users, and extra costs to companies involved. The FASB's intent in issuing SFAS 121 was to force more consistency among companies in recording long-lived asset writedowns. However, some of its provisions are broad enough to enable management to still formulate aggressive or conservative approaches to the recognition of asset impairment losses. By reviewing existing literature on the topic, collecting and analyzing data, and drawing some conclusions based on what the author has found, the author conducted this research project about how FASB 121 has actually affected financial reporting.

Access Setting

Honors Thesis-Open Access

Included in

Accounting Commons