lifering

Perspectives

A roadmap to reporting discontinued operations

This Roadmap provides Deloitte’s insights into and interpretations of the accounting guidance on reporting discontinued operations in ASC 205-20. The body of this Roadmap combines the principles from ASC 205-20 with Deloitte’s interpretations and examples in a comprehensive, reader-friendly format. Further, the table of contents is a helpful navigational tool, providing links to topics and interpretations.

In April 2014, the FASB issued ASU 2014-08, which elevates the threshold for presenting a disposal transaction as a discontinued operation. Under that revised guidance, an entity presents a disposal as a discontinued operation if it “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results.” ASU 2014-08 does not define the terms “strategic shift” or “major.” Therefore, determining whether a disposal qualifies for discontinued-operations reporting requires the entity to assess both qualitative and quantitative factors and will require the use of judgment.

This Roadmap also provides Deloitte’s insights into and interpretations of the accounting guidance on determining whether a disposal group meets the criteria to be presented as held for sale and the reporting for a disposal group that does not qualify as a discontinued operation.

The body of this Roadmap combines the principles from ASC 205-20 with Deloitte’s interpretations and examples in a comprehensive, reader-friendly format. Further, the table of contents is a helpful navigational tool, providing links to topics and interpretations.

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The Roadmap Series contains periodic collections of our accounting guidance on selected topics of broad interest to the financial reporting community.

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