2   ASC 205 PRESENTATION OF FINANCIAL STATEMENTS

Perspective and Issues

Subtopics

Technical Alert

Definitions of Terms

Concepts, Rules, and Examples

ASC 205-10, Overall

Comparative Statements

Changes affecting comparability

ASC 205-20, Discontinued Operations

Determining When a Component of an Entity Should Be Classified as a Discontinued Operation

Cases – determination of whether to report discontinued operation

Presentation

Example of income statement presentation for discontinued operations

Allocation of Overhead and Interest to Discontinued Operation

Computing the gain or loss on disposal

Example of computing the gain or loss on disposal

Future periods

Example of discontinued operations in future period

Example of discontinued operations reporting

Other Sources

PERSPECTIVE AND ISSUES

Subtopics

ASC 205, Presentation of Financial Statements, is divided into two subtopics:

  • ASC 205-10, Overall, which emphasizes the value of comparative financial statements, and
  • ASC 205-20, Discontinued Operations, which provides guidance
    • On reporting the results of operations when a component of an entity has been disposed of or is classified as held for sale and
    • On the allocation of interest and overhead of discontinued operations
  • ASC 205-30, Liquidation Basis of Accounting, which is expanded upon in the technical alert below.

Technical Alert

In April 2013, the FASB issued ASU 2013-07, Presentation of Financial Statements (Topic 205: Liquidation Basis of Accounting. The ASU clarifies when ...

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