# ASC 205-10-05: Presentation of Financial Statements — Overall — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/205/10/#05-overview-and-background) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T22:51:50.899Z to 2026-09-09T22:51:50.899Z Record version: sha256:b62ed5e2b74548fff19dad400f584b29147f4ffd236dda224dc7031c0d4447af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/205/10/#05-overview-and-background) SEC content: no ##### [205-10-05-1](https://asc.understandingaccounting.org/asc/205/10/#205-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:50.899Z to 2026-09-09T22:51:50.899Z Record version: sha256:03b608204ba007b17ddf11bc64e62299ace36cefbfa0d1cb002671cda280e76b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Presentation of Financial Statements Topic includes the following Subtopics: 1. a Overall 2. b Discontinued Operations 3. c Liquidation Basis of Accounting 4. d Going Concern. ##### [205-10-05-2](https://asc.understandingaccounting.org/asc/205/10/#205-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:50.899Z to 2026-09-09T22:51:50.899Z Record version: sha256:bc7aaca0a2293f7a5dbf792efeaae949864b99d11fb021a5a853a0f42f356258 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [205-10-05-3](https://asc.understandingaccounting.org/asc/205/10/#205-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:50.899Z to 2026-09-09T22:51:50.899Z Record version: sha256:acad13c450119f908e025c6658204c241cbacab47691bdf2b1e3603b3ecb82ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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: 1. a A [component of an entity](https://asc.understandingaccounting.org/glossary/c/#component-of-an-entity "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.") that either has been disposed of or is classified as held for sale 2. b A [business](https://asc.understandingaccounting.org/glossary/b/#business "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.") or [nonprofit activity](https://asc.understandingaccounting.org/glossary/n/#nonprofit-activity "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.") that, on acquisition or upon formation of a [joint venture](https://asc.understandingaccounting.org/glossary/j/#joint-venture "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."), is classified as held for sale. ##### [205-10-05-3A](https://asc.understandingaccounting.org/asc/205/10/#205-10-05-3A) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:50.899Z to 2026-09-09T22:51:50.899Z Record version: sha256:b4278c26cd082595c5c28a8f4f3afd042f008edb4bd9128ee74089c71453b6f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 property, plant, and equipment provides guidance on presenting disposal gains and losses and impairment losses on assets classified as held for sale. ##### [205-10-05-4](https://asc.understandingaccounting.org/asc/205/10/#205-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:50.899Z to 2026-09-09T22:51:50.899Z Record version: sha256:33cf4175a3b804c60e38f7d7daab87f4c4f84e1344c47c4ab3af989e4276978e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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.