5.1 Overview

The reporting of discontinued operations separately from continuing operations is meant to provide stakeholders with information on assessing the effects of a disposal on an entity’s ongoing operations. The operations of a disposal group may only be presented as a discontinued operation once the assets (and liabilities) meet the criteria to be classified as held for sale, have been sold, or have been otherwise disposed of (e.g., abandonment) and only if the disposal represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. Therefore, not all disposal transactions qualify for discontinued-operations reporting. If the assets (and liabilities) of the discontinued operation are classified as held for sale (rather than having been disposed of), they are measured at the lower of their carrying amount or fair value less costs to sell like other assets that are classified as held for sale under ASC 360-10.