Summary of Statement No. 40
Summary of Statement No. 40
Financial Reporting and Changing Prices: Specialized Assets-Timberlands and Growing Timber--a supplement to FASB Statement No. 33 (Issued 11/80)
Summary
This Statement extends the interim provisions in FASB Statement
No. 33, Financial Reporting and Changing Prices, for the
measurement of timberlands, growing timber, and related expenses,
in information on a current cost basis. It requires enterprises
that present information on a current cost basis to combine
measures of those assets and expenses at either historical
cost/constant dollar amounts or current cost amounts with current
cost measures of other assets and expenses. Statement 33 provides
that an enterprise need not present information on a current cost
basis if there would be no material difference between that
information and information on a historical cost/constant dollar
basis. Therefore, an enterprise needs to present information on a
current cost basis only if it has significant holdings of
inventory, property, plant, and equipment apart from timberlands
and growing timber. This Statement applies to fiscal years ended on
or after December 25, 1980.
The Board will continue to work with its advisory
task group for the forest products industry to develop, as soon as
possible, improved methods of measuring the effects of changing
prices on this industry.