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.
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.