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.

Journal Entry — Discontinued Operations — FASB Decides to Issue Exposure Draft

Published on: Mar 13, 2013

At its meeting today, the FASB decided to issue an exposure draft on reporting discontinued operations by the end of the first quarter of 2013. The proposal would substantially converge the definition of a discontinued operation under ASC 205-201 with that under IFRS 52 and would expand the disclosure requirements for disposals, including disclosures about significant components that do not qualify as discontinued operations.

In addition to promoting convergence, the proposed guidance is intended to address the FASB’s concerns that (1) financial statements may not be decision-useful when too many disposals of assets qualify for discontinued operations and (2) there are challenges and inconsistencies with applying the current continuing involvement criterion used in determining whether a component of an entity should be reported in discontinued operations.

The proposal would have a 150-day comment period. For more information about the proposal, see the project page on the FASB’s Web site. Also, watch for Deloitte’s upcoming Heads Up on the proposal.

 


[1] FASB Accounting Standards Codification Subtopic 205-20, Presentation of Financial Statements: Discontinued Operations.

[2] IFRS 5, Non-current Assets Held for Sale and Discontinued Operations.

Accounting Journal Entries Image

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.