Wiley GAAP 2024

2ASC 205 PRESENTATION OF FINANCIAL STATEMENTS¹

• Perspective and Issues
  • Subtopics
  • Scope and Scope Exceptions
    • ASC 205
    • ASC 205-20
    • ASC 205-30
    • ASC 205-40
• Definitions of Terms
• Concepts, Rules, and Examples
  • ASC 205-10, Overall
    • Comparative Statements
    • Changes Affecting Comparability
  • ASC 205-20, Discontinued Operations
    • Determining When a Disposal Should Be Presented as a Discontinued Operation
    • The Concept of a Strategic Shift
    • Classification as Held for Sale
    • Example—Determination of Whether to Report Discontinued Operations
    • Presentation—Balance Sheet
    • Presentation—Income Statement
    • Example of Income Statement Presentation for Discontinued Operations
    • Adjustments to Amounts Previously Reported
  • ASC 205-30, Liquidation Basis of Accounting
    • Measurement
    • Financial Statements
  • ASC 205-40, Going Concern
    • Step 1: Evaluating Conditions and Events That May Raise Substantial Doubts
    • Step 2: Consideration of Management’s Plans When Substantial Doubt Is Raised
  • Disclosure Requirements
    • Example—Substantial Doubts About Going Concern Are Raised but Alleviated
    • 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 ...