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U.S. GAAP Codification of Accounting Standards

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U.S. GAAP Accounting Standards
Codification Topic 205-20: Presentation of Financial Statements
Discontinued Operations

Codification Topic 205-20
Presentation of Financial Statements
Discontinued Operations

Discontinued Operations

SFAS 144, August 2001
"Accounting for the Impairment or Disposal of Long-Lived Assets"

EITF 03-13, 2003
"Applying the Conditions in Paragraph 42 of FASB Statement No. 144 in Determining Whether to Report Discontinued Operations"

EITF 87-24, 1987
"Allocation of Interest to Discontinued Operations"

The results of operations of (A) or (B) are
--> "reported in discontinued operations"
--> if both (1) and (2) are satisfied

(A) An entity's component that has been "disposed of"
(B) An entity's component that is "held for sale"

(1) Operations and cash flows are eliminated from ongoing operation
(2) The entity does not have significant "continuing involvement"

The results of discontinued operations are
--> reported as a "separate component of income"
--> "before" extraordinary items

Recognized gain or loss "on disposal" is
--> disclosed either (C) or (D)

(C) on the face of income statement
(D) in the notes to financial statements

Codification Topic 205
Presentation of Financial Statements

Subtopics

205-10 Overall
205-20 Discontinued operations

Accounting Terms

   Asset group
   Component of an entity
   Operating segment
   Reporting unit

   Commodity
   Continuation of activities
   Continuing cash flows
   Disposal group
   Migration
   Settlement of a pension or postretirement benefit obligation