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ASC 205 — Presentation of Financial Statements

Below is an overview of FASB Accounting Standards Codification Topic 205, Presentation of Financial Statements, as well as a list of FASB Accounting Standards Updates (ASUs) and proposed ASUs related to this Topic.


The full text of ASC 205, Presentation of Financial Statements can be found in the FASB Accounting Standards Codification (link to the FASB's Web site; registration required). Also, the full text of the Codification and Deloitte-authored Q&As related to the Codification are available in the Deloitte Accounting Research Tool (DART) Web site (subscription required).

Accounting Standards Codification Topic 205 (ASC 205) contains three Suptopics (Overall, Discontinued Operations, and Liquidation Basis of Accounting). Below is an overview of each Subtopic.

205-10 Overall

ASC 205-10 notes that the Subtopic "describes the benefits of presenting comparative financial statements instead of single-period financial statements, and addresses how the comparative information shall be presented and the required disclosures."

205-20 Discontinued Operations

ASC 205-20 addresses the accounting for components that have been disposed of or are classified as held for sale, and specifically states:


This Subtopic provides guidance on when the results of operations of a component of an entity that either has been disposed of or is classified as held for sale would be reported as a discontinued operation in the financial statements of the entity. It also addresses the allocation of interest and overhead to discontinued operations. Subtopic 360-10 establishes held for sale criteria in paragraphs 360-10-45-9 through 45-14.

205-30 Liquidation Basis of Accounting

ASC 205-30 was added to the Codification by ASU 2013-07, which is effective for entities that determine liquidation is imminent during annual periods beginning after December 15, 2013, and interim reporting periods therein. ASC 205-30 notes:


The Liquidation Basis of Accounting Subtopic provides guidance on when and how an entity should prepare its financial statements using the liquidation basis of accounting and describes the related disclosures that should be made.

Content from the FASB Accounting Standards Codification® included at is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116, and is reproduced with permission.

FASB Accounting Standards Updates

The following ASUs amend this Topic:

Proposed FASB Accounting Standards Updates

No current proposed ASUs on Topic 205.

Related resources

See our comprehensive collection of news and publications related to the presentation of financial statements.

International guidance

For the IASB's guidance on this topic, see IFRS 5, Non-current Assets Held for Sale and Discontinued Operations.

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.