Question

FASB ASC 6‐4 Discontinued Operations The revised definition of discontinued operations is contained in the FASB ASC. Find this definition, cite the paragraph, and copy it.

Answer 1

As per FASB ASC 205-20 discontinued operations were redefined as a component or group of components of an entity that (1) has been disposed of by sale or other than by sale in accordance with ASC 360-10-45-15, or is classified as held for sale, and (2) “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results.” According to the ASU, a strategic shift that has (or will have) a major effect on an entity’s operations and results includes the disposal of any of the following:

• A major geographical area.

• A major line of business.

• A major equity method investment.

• Other major parts of an entity.

Reference:

https://www.iasplus.com/en/publications/us/heads-up/2014/disc-ops

https://www.fasb.org/cs/ContentServer?c=Document_C&cid=1176163965758&d=&pagename=FASB%2FDocument_C%2FDocumentPage