Wiley GAAP 2021, 2nd Edition

2ASC 205 PRESENTATION OF FINANCIAL STATEMENTS

1. Perspective and Issues
   1. Subtopics
   2. Scope and Scope Exceptions
      1. ASC 205‐10
      2. ASC 205‐20
      3. ASC 205‐30
      4. ASC 205‐40
2. Definitions of Terms
3. Concepts, Rules, and Examples
   1. ASC 205‐10, Overall
      1. Comparative Statements
      2. Changes Affecting Comparability
   2. ASC 205‐20, Discontinued Operations
      1. Determining When a Disposal Should Be Presented as a Discontinued Operation
      2. The Concept of a Strategic Shift
      3. Classification as Held for Sale
      4. Example—Determination of Whether to Report Discontinued Operations
      5. Presentation—Balance Sheet
      6. Presentation—Income Statement
      7. Example of Income Statement Presentation for Discontinued Operations
      8. Adjustments to Amounts Previously Reported
   3. ASC 205‐30, Liquidation Basis of Accounting
      1. Measurement
      2. Financial Statements
   4. ASC 205‐40, Going Concern
      1. Step 1: Evaluating Conditions and Events That May Raise Substantial Doubts
      2. Step 2: Consideration of Management’s Plans When Substantial Doubt Is Raised
      3. Disclosure Requirements
      4. Example—Substantial Doubts About Going Concern Are Raised but Alleviated
      5. Example—Substantial Doubts About Going Concern Are Raised and Not Alleviated by Management’s Plans

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 ...