Chapter 6 — Presentation and Disclosure Requirements for Disposals That Are Not Reported as Discontinued Operations

6.4 Disclosures for Disposals That Are Not Discontinued Operations

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6.4 Disclosures for Disposals That Are Not Discontinued Operations

ASC 360-10-50-3 requires the following disclosures for disposals that do not meet the criteria for discontinued-operations reporting only in the period in which the component is classified as held for sale or disposed of:

ASC 360-10

50-3 For any period in which a long-lived asset (disposal group) either has been disposed of or is classified as held for sale (see paragraph 360-10-45-9), an entity shall disclose all of the following in the notes to financial statements:

A description of the facts and circumstances leading to the disposal or the expected disposal.
The expected manner and timing of that disposal.
The gain or loss recognized in accordance with paragraphs 360-10-35-37 through 35-45 and 360-10-40-5.
If not separately presented on the face of the statement where net income is reported (or in the statement of activities for a not-for-profit entity), the caption in the statement where net income is reported (or in the statement of activities for a not-for-profit entity) that includes that gain or loss.
If not separately presented on the face of the statement of financial position, the carrying amount(s) of the major classes of assets and liabilities included as part of a disposal group classified as held for sale. Any loss recognized on the disposal group classified as held for sale in accordance with paragraphs 360-10-35-37 through 35-45 and 360-10-40-5 shall not be allocated to the major classes of assets and liabilities of the disposal group.
If applicable, the segment in which the long-lived asset (disposal group) is reported under Topic 280 on segment reporting.

Pending Content (Transition Guidance: ASC 220-40-65-1)

A description of the facts and circumstances leading to the disposal or the expected disposal.
The expected manner and timing of that disposal.
The gain or loss recognized in accordance with paragraphs 360-10-35-37 through 35-45 and 360-10- 40-5.
If not separately presented on the face of the statement where net income is reported (or in the statement of activities for a not-for-profit entity), the caption in the statement where net income is reported (or in the statement of activities for a not-for-profit entity) that includes that gain or loss.
If not separately presented on the face of the statement of financial position, the carrying amount(s) of the major classes of assets and liabilities included as part of a disposal group classified as held for sale. Any loss recognized on the disposal group classified as held for sale in accordance with paragraphs 360-10-35-37 through 35-45 and 360-10-40-5 shall not be allocated to the major classes of assets and liabilities of the disposal group.
If applicable, the segment in which the long-lived asset (disposal group) is reported under Topic 280 on segment reporting.

See paragraphs 220-40-50-21 through 50-25 for additional disclosure requirements.

Disclosure requirements other than those in ASC 360-10-50-3 and 50-3A primarily inform financial statement users about an entity’s ongoing assets. While the extent of certain disclosures may vary on the basis of the facts and circumstances, we believe that disclosures required for assets held and used by an entity, which are mandated under other Codification topics (e.g., ASC 310 on accounts receivable, ASC 350 on goodwill and other intangible assets, ASC 842 on leases) are generally not required for a disposal group under ASC 360-10. This is because the reporting requirements outside ASC 360-10 are intended to provide financial statement users with the information they need to assess an entity's ongoing operations; therefore, similar disclosures for disposal groups would not be as meaningful. However, certain disclosures under ASC 275 (e.g., those pertaining to risks and uncertainties associated with the use of estimates) may also be appropriate for disposal groups.

Changing Lanes

In November 2024, the FASB issued ASU 2024-03, which requires the disaggregation of income statement expenses for PBEs. The ASU does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in tabular disclosures within the footnotes to the financial statements. A “relevant expense caption” subject to disaggregation is any caption on the face of the income statement within continuing operations that includes any of the following natural expenses: (1) purchases of inventory; (2) employee compensation; (3) depreciation; (4) intangible asset amortization; and (5) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities or other depletion expenses. In addition to these natural expense categories, the tabular disclosure would include certain other expenses, gains, and losses, when applicable, such as gains or losses recognized in accordance with ASC 360-10-35-37 through 35-45 and ASC 360-10-40-5 for long-lived assets classified as held for sale or disposed of.

Further, on January 6, 2025, the FASB issued ASU 2025-01, which amends ASU 2024-03’s effective date “to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027.”

For more information about ASU 2024-03, see Deloitte’s November 8, 2024 (updated January 21, 2025), Heads Up.

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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.