2 ASC 205 PRESENTATION OF FINANCIAL 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
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
Example of discontinued operations in future period
Example of discontinued operations reporting
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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