7.5 Overview of Disclosures About Discontinued Operations
ASC 205-20
05-2
The required disclosures about discontinued operations vary
depending on the nature of the discontinued operation. For
example, if a discontinued operation includes a component or
group of components of an entity that is not an equity
method investment, a more comprehensive set of disclosures
about the discontinued operation is required. If the
discontinued operation includes an equity method investment,
or a business or nonprofit activity that is classified as
held for sale on acquisition, a more limited set of
disclosures is required (see the flowchart in paragraph
205-20-55-82 for an illustration).
Under ASC 205-20, certain disclosures are required for all disposals
that qualify as a discontinued operation; however, the disclosure requirements for
disposals of an equity method investment or a business or nonprofit activity
classified as held for sale on acquisition are more limited.
Disclosure requirements other than those in ASC 205-20 primarily
inform financial statement users about an entity’s continuing operations. While the
extent of certain disclosures may vary on the basis of the facts and circumstances,
we believe that disclosures required for continuing operations under other
Codification topics (e.g., ASC 350 on goodwill and other intangible assets, ASC 606
on revenue, ASC 842 on leases) are generally not required for a component that is
presented in discontinued operations. However, certain disclosures required by ASC
275 (e.g., those pertaining to risks and uncertainties associated with the use of
estimates) may also be appropriate for discontinued operations.
See Section 7.11 for a flowchart that provides an overview of
the disclosures required for discontinued operations.