Wiley GAAP 2019

2 ASC 205 PRESENTATION OF FINANCIAL STATEMENTS

PERSPECTIVE AND ISSUES

Subtopics

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

• ASC 205-10, Overall, which emphasizes the value of comparative financial statements.
• 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
  • A business or nonprofit activity that, on acquisition, is classified as held for sale.
• ASC 205-30, Liquidation Basis of Accounting, provides guidance on when and how to prepare liquidation basis of accounting financial statements and the related disclosures.
• ASC 204-40, Going Concern, which provides guidance for evaluating whether there is substantial doubt about an entity's ability to continue as a going concern.

Scope and Scope Exceptions

ASC 205-10. The guidance in ASC 205-10 applies to

• All subtopics in ASC 205-10 unless explicitly excluded
• Business entities and not-for-profit entities

(ASC 205-10-15-1)

ASC 205-20. The guidance in 205-20 applies to either:

• A component of an entity or a group of components that is disposed of or is classified as held for sale, or
• A business or nonprofit entity that, on acquisition, is classified as held for sale. (ASC 205-20-15-2)

The guidance does not apply to oil and gas properties that use the full-cost method of accounting prescribed by the SEC. (ASC 205-20-15-3)

ASC 205-30. ASC 205-30 does not apply to ...