This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Reporting discontinued operations

The primary objective of the project is to improve the definition and reporting of discontinued operations. Some stakeholders have said that too many disposals of assets qualify for discontinued operations presentation. This results in financial statements that are not decision-useful for users and higher costs for preparers. The project will also enhance convergence of the FASB’s and the IASB’s reporting requirements for discontinued operations.

 

Meeting minutes

FASB discussions regarding this project are found in the following meeting minutes:

  • January 15, 2014 — The Board discussed issues relating to the preballot draft of its proposed Accounting Standards Update (ASU), Presentation of Financial Statements (Topic 205): Reporting Discontinued Operations.
  • November 13, 2013 — The Board discussed issues relating to the issuance of a final ASU.
  • March 13, 2013 — The Board met to discuss issues relating to the development of an exposure draft, and decided to replace the cash-generating unit concept in the proposed definition of discontinued operation with the current definition of component of an entity in U.S. GAAP.
  • December 12, 2012 — The Board deliberated the proposed disclosure requirements for public and nonpublic entities, disposals of subsidiaries in which the parent entity retains a noncontrolling interest, and reaffirmed its prior decision to issue a proposed ASU on reporting discontinued operations.
  • February 3, 2010 — The Board deliberated whether to eliminate the scope exceptions in ASC 205-20, Presentation of Financial Statements: Discontinued Operations, and converge the scope with IFRS 5, Non-current Assets Held for Sale and Discontinued Operations, and  determine the length of the comment period for the proposed ASU.
  • December 17, 2009 (joint meeting with the IASB) — The boards finalize the definition and disclosures of a discontinued operation, and decided that the proposed guidance would be reexposed.
  • October 26, 2009 (joint meeting with the IASB) — The boards discussed alternatives to the definition of a discontinued operation and directed the staff to explore the option of adopting the definition of a discontinued operation in IFRS 5 as the converged definition. The boards also directed the staff to analyze the disclosures required by IFRS 5 and ASC 205, and develop a proposal for converged disclosures.
  • August 26, 2009 — The Board discussed the feedback received during the user outreach and staff recommendations based on the input received.
  • July 21, 2009 
  • July 23, 2008 — The Board discussed remaining issues related to the definition of discontinued operations, and directed the staff proceed with a draft of a proposed FASB Staff Position (FSP).
  • May 14, 2008 — The Board discussed issues relating to a converged definition of discontinued operations, required disclosures for all components of an entity that have been (or will be) disposed of, effective date and transition, and proposed FSP comment period. A number of decisions were reached.
  • April 18, 2007 — The Board decided that the guidance on reporting a discontinued operation and the additional disclosures for components that have been or will be disposed of should be separated from the financial statement presentation project.
  • January 24, 2007 — Boards discussed the definition of discontinued operations; application of the working format to a “hybrid” entity; and the statement of changes in equity and equity-related issues. A number of decisions were reached.

 

Current status

A final ASU was issued on April 10, 2014.

 

Project milestones

DateDevelopmentComments
April 20, 2007 The Board decided to separate the guidance on reporting a discontinued operations from the financial statement presentation project.
September 2008 Exposure Draft, Amending the Criteria for Reporting a Discontinued Operation. Comment deadline January 23, 2009.
April 2, 2013 Proposed ASU, Presentation of Financial Statements (Topic 205): Reporting Discontinued Operations. Comment deadline August 30, 2013.
April 10, 2014 FASB Accounting Standards Update No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Effective first quarter of 2015 for public organizations with calendar year-ends. Effective December 15, 2014, for most nonpublic organizations.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.