Presentation of Financial Statements
Discontinued Operations
SFAS 144, August 2001
“Accounting for the Impairment or Disposal of Long-Lived Assets”
“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”
“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”
“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
–> 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”
(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”
(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
–> “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
(D) in the notes to financial statements