7.11 Flowchart of the Required Disclosures for Discontinued Operations
ASC 205-20
55-82 The following flowchart provides an overview of the disclosures required for discontinued operations.
Pending Content (Transition Guidance: ASC
805-60-65-1)
55-82 The following flowchart provides
an overview of the disclosures required for
discontinued operations.
Changing Lanes
In August 2023, the FASB issued
ASU 2023-05,
which requires entities that qualify as either a
joint
venture or a corporate joint venture, as defined in
the ASC master glossary, to apply a new basis of
accounting upon the formation of the joint venture.
The ASU’s amendments “are effective prospectively
for all joint venture formations with a formation
date on or after January 1, 2025.” Early adoption is
permitted.
The ASU amends ASC 205-10-05-3(b), and
makes related amendments to ASC 205-20, to indicate
that a “business or nonprofit activity that, on
acquisition or upon formation of a joint venture, is
classified as held for sale” by the newly formed
joint venture would be reported as a discontinued
operation.