Handbook | January 2021

 

Insight

Handbook: Discontinued operations & HFS disposal groups

Latest edition: Our in-depth guide to ASC 205-20 and held-for-sale disposal groups under ASC 360-10.

Valerie Boissou

Valerie Boissou

Partner, Dept. of Professional Practice, KPMG US

+1 212-954-1723

Kayla Futch

Kayla Futch

Managing Director, Dept. of Professional Practice, KPMG US

+1 212-954-6455

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

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