Appendix D — Roadmap Updates for 2023 | DART – Deloitte Accounting Research Tool

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Appendix D — Roadmap Updates for 2023

The tables below summarize the substantive changes made since the issuance of the 2022 edition of this Roadmap.

New Content

Section	Title	Description
4.5	Other Nonreciprocal Transfers Other Than Spin-Offs	New section addressing other nonreciprocal transfers that are not spin-offs.
4.5.1	Common-Control Transactions	New section addressing impairment considerations in common-control transactions.

Amended Content

Section	Title	Description
1.4	Scope of ASC 205-20 — Presenting Discontinued Operations	Added “Changing Lanes” to discuss the issuance of ASU 2023-05.
2.2	When to Test a Long-Lived Asset (Asset Group) for Recoverability	Added examples illustrating events or changes in circumstances that may indicate that the carrying amount of a long-lived asset (group) is not recoverable.
2.3.1	Entity-Wide Assets	Added an example illustrating the impairment assessment for an entity-wide asset.
2.3.6	Foreign Asset Groups and Accumulated Other Comprehensive Income, Including Foreign Currency Translation, in Asset Groups	Clarified that an entity performs the recoverability test in its functional currency even if the books of record of the asset group are not maintained in this currency. Clarified that it is appropriate to analogize to the guidance in ASC 830-30-45-13 for all items of AOCI when evaluating a foreign asset group for recoverability while it is classified as held and used.
2.3.7	Order of Impairment Testing When an Asset Group Is Held and Used	Addressed clarification in ASU 2016-20 related to order of impairment testing. Added accounts receivable and inventory to the list of assets that would be tested for impairment before the long-lived asset group is tested for impairment.
2.4.1.1	Estimates of Future Cash Flows Are Undiscounted and Based on the Entity’s Expected Use of the Asset Group	Clarified that cash flows used in the recoverability test should be based only on facts and circumstances available as of the testing date.
2.4.1.3	Estimates of Future Cash Flows Should Be Reasonable	Clarified that if there is substantial doubt about an entity’s ability to continue as a going concern, the use of a probability-weighted approach to estimate cash flows may be warranted.
2.4.3	Probability-Weighted and Best-Estimate Cash Flow Approaches	Clarified the circumstances in which an entity should use a probability-weighted approach to estimate cash flows.
3.4.1	Goodwill	Presented guidance on allocating goodwill to disposals in a tabular format.
3.4.2	Cumulative Translation Adjustments and Other Items of Accumulated Other Comprehensive Income	Added guidance clarifying that it is appropriate to analogize to the guidance in ASC 830-30-45-13 for all items of AOCI.
3.5.3	Costs to Sell	Added guidance clarifying that extinguishment gains or losses or prepayment penalties should not be included in costs to sell.
3.6.1	Depreciation and Amortization	Explained that interest on any related lease liabilities should continue to be accreted, although entities should cease amortization of any ROU assets once the disposal group meets the held-for-sale criteria.
4.2	Assets to Be Abandoned	Incorporated additional (1) guidance on the revision of depreciation estimates when an asset is planned to be abandoned and (2) considerations related to situations in which fair value may approximate zero.
4.3	Nonmonetary Exchange	Clarified that if a nonmonetary exchange does not meet any of the conditions in ASC 845-10-30-3 and is accounted for at fair value, the disposal should be assessed as a sale transaction and the disposal group should be classified as held for sale when the criteria are met.
4.4	Spin-Offs and Other Nonmonetary Exchanges Recorded at Carrying Amount	Clarified the definition of a nonreciprocal transfer as well as guidance related to nonreciprocal transfers that are not spin-offs.
5.2.2	Strategic Shift That Has (or Will Have) a Major Effect	Clarified that the criteria for reporting discontinued operations should be separately evaluated at each level of financial statement reporting.
5.6	A Business or Nonprofit Activity Classified as Held for Sale Upon Acquisition	Added “Changing Lanes” to reflect the issuance of ASU 2023-05.
6.2	Balance Sheet Presentation for Assets (Disposal Groups) Classified as Held for Sale That Are Not Discontinued Operations	Updated guidance to reiterate that an entity should not reclassify prior-period balance sheets.
7.2	Balance Sheet Presentation of Discontinued Operations	Clarified guidance on when held-for-sale or held-for-disposition presentation in prior periods is appropriate.
7.4.2	Adjustments to Amounts Previously Reported in Discontinued Operations	Removed reference to presentation of discontinued operations before ASU 2014-08, since the amendment made by this ASU is now effective for all entities.
7.7.1	Changes to a Plan of Sale	Clarified guidance related to changes to a plan for selling a component that met the criteria for a discontinued operation.
7.11	Flowchart of the Required Disclosures for Discontinued Operations	Added “Changing Lanes” to reflect the issuance of ASU 2023-05.
8.2	Financial Statements and Other Affected Financial Information in Exchange Act Reports	Added earnings (loss) per share to the list of summarized financial information.
8.5.1	Pro Forma Financial Information for a Consummated or Probable Disposition	Clarified when pro forma information must be provided in a Form 8-K, Item 2.01, for a consummated or probable disposition.

Confidential and Proprietary — for Use Solely by Authorized Personnel

This publication provides comprehensive guidance; however, it does not address all possible fact patterns, and the guidance is subject to change. Consult a Deloitte & Touche LLP professional regarding your specific issues and questions.