Handbook: Discontinued operations & HFS disposal groups

KPMG explains when and how to apply the discontinued operations guidance in ASC 205-20 and held-for-sale guidance in ASC 360-10. This update introduces new material to explain the measurement requirements under ASC 360-10 for disposal groups and assets held-for-sale.

Applicability

ASC Subtopic 205-20

ASC Subtopic 360-10

• All companies with operations that may be discontinued or long-lived assets that may be sold or otherwise disposed of.

Key impacts

• Explains when the held-for-sale criteria are met
• Discusses how to measure a held-for-sale disposal group
• Addresses specific presentation and disclosure issues relating to discontinued operations
• Examples and observations to illustrate and explain key concepts such as ‘component’ and ‘strategic shift’

Report contents

• Scope
• Component of an entity
• Disposed of or held-for-sale
• Strategic shift test
• Presentation of discontinued operations
• Disclosure of discontinued operations
• Measurement of held-for-sale disposal groups
• Presentation and disclosure of held-for-sale disposal groups that are not discontinued operations