{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/205/10/#05-overview-and-background","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"205","topic_title":"Presentation of Financial Statements","subtopic":"205-10","subtopic_title":"Overall","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"205-10-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Presentation of Financial Statements Topic includes the following Subtopics: <ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">Overall</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\">Discontinued Operations</div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_66C06BE8-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Liquidation Basis of Accounting</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">d</span><div class=\"p\">Going Concern.</div></li></ol></div></div>","snippet":"The Presentation of Financial Statements Topic includes the following Subtopics:\n(a) Overall\n(b) Discontinued Operations\n(c) Liquidation Basis of Accounting\n(d) Going Concern.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:03b608204ba007b17ddf11bc64e62299ace36cefbfa0d1cb002671cda280e76b","downloaded_from":"2026-09-09T22:51:50.899Z","last_downloaded_at":"2026-09-09T22:51:50.899Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483505","source_sha256":"94dc320f5054bac889cb7987d58384c70f64387ef3239664df25f0167b10a55c"}},{"citation":"205-10-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Overall Subtopic describes the benefits of presenting comparative financial statements instead of single-period financial statements, and addresses how the comparative information shall be presented and the required disclosures.</div></div>","snippet":"The Overall Subtopic describes the benefits of presenting comparative financial statements instead of single-period financial statements, and addresses how the comparative information shall be presented and the required …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bc7aaca0a2293f7a5dbf792efeaae949864b99d11fb021a5a853a0f42f356258","downloaded_from":"2026-09-09T22:51:50.899Z","last_downloaded_at":"2026-09-09T22:51:50.899Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483505","source_sha256":"94dc320f5054bac889cb7987d58384c70f64387ef3239664df25f0167b10a55c"}},{"citation":"205-10-05-3","para":"05-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><div class=\"norm-text\">The Discontinued Operations Subtopic discusses the conditions under which <span class=\"sfragment\" id=\"GUID-F7B3E589-4237-4C93-AF43-E05A9C19096F\"><span class=\"sfragment-source\">either of the following would be reported in an entity's financial statements as a discontinued operation: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">A <a href=\"/glossary/c/#component-of-an-entity\" class=\"term\" title=\"A component of an entity comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity. A component of an entity may be a reportable segment or an operating segment, a reporting unit, a subsidiary, or an asset group.\"><span>component of an entity</span></a> that either has been disposed of or is classified as held for sale</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-95E121CE-B5A9-432B-B6A3-A943905E50AE\"><span class=\"sfragment-source\">A <a href=\"/glossary/b/#business\" class=\"term\" title=\"Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business.\"><span>business</span></a> or <a href=\"/glossary/n/#nonprofit-activity\" class=\"term\" title=\"An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing benefits, other than goods or services at a profit or profit equivalent, as a fulfillment of an entity's purpose or mission (for example, goods or services to beneficiaries, customers, or members). As with a not-for-profit entity, a nonprofit activity possesses characteristics that distinguish it from a business or a for-profit business entity.\"><span>nonprofit activity</span></a> that, on acquisition </span></span><span class=\"sfragment\" id=\"GUID-73B1A13F-B605-4A2D-BC44-5E02BC17A871\"><span class=\"sfragment-source\">or upon formation of a <a href=\"/glossary/j/#joint-venture\" class=\"term\" title=\"An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.\"><span>joint venture</span></a>, </span></span><span class=\"sfragment\" id=\"GUID-A107E775-AC2B-463F-B9E9-F4AFBF90B3D3\"><span class=\"sfragment-source\">is classified as held for sale.</span></span></div></li></ol></div></div></div>","snippet":"The Discontinued Operations Subtopic discusses the conditions under which either of the following would be reported in an entity's financial statements as a discontinued operation:\n(a) A component of an entity that eithe…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:acad13c450119f908e025c6658204c241cbacab47691bdf2b1e3603b3ecb82ac","downloaded_from":"2026-09-09T22:51:50.899Z","last_downloaded_at":"2026-09-09T22:51:50.899Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483505","source_sha256":"94dc320f5054bac889cb7987d58384c70f64387ef3239664df25f0167b10a55c"}},{"citation":"205-10-05-3A","para":"05-3A","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_66C06FA7-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If a component of an entity that either has been disposed of or is classified as held for sale does not meet the conditions to be reported in discontinued operations, Section <a altsource=\"GUID-EA586976-255C-4263-A6A5-CE40BD9C3879.ditamap\" class=\"ditamap\">360-10-45</a> on other presentation matters of property, plant, and equipment provides guidance on presenting disposal gains and losses and impairment losses on assets classified as held for sale. </span></span></div></div>","snippet":"If a component of an entity that either has been disposed of or is classified as held for sale does not meet the conditions to be reported in discontinued operations, Section 360-10-45 on other presentation matters of pr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b4278c26cd082595c5c28a8f4f3afd042f008edb4bd9128ee74089c71453b6f0","downloaded_from":"2026-09-09T22:51:50.899Z","last_downloaded_at":"2026-09-09T22:51:50.899Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483505","source_sha256":"94dc320f5054bac889cb7987d58384c70f64387ef3239664df25f0167b10a55c"}},{"citation":"205-10-05-4","para":"05-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_66C070AA-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The Liquidation Basis of Accounting Subtopic provides guidance on when and how an entity should prepare its financial statements using the liquidation basis of accounting and describes the related disclosures that should be made.</span></span></div></div>","snippet":"The Liquidation Basis of Accounting Subtopic provides guidance on when and how an entity should prepare its financial statements using the liquidation basis of accounting and describes the related disclosures that should…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:33cf4175a3b804c60e38f7d7daab87f4c4f84e1344c47c4ab3af989e4276978e","downloaded_from":"2026-09-09T22:51:50.899Z","last_downloaded_at":"2026-09-09T22:51:50.899Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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