# ASC 205-20-15: Presentation of Financial Statements — Discontinued Operations — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/205/20/#15-scope-and-scope-exceptions) 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): 2026-09-09T22:52:53.997Z to 2026-09-09T22:52:53.997Z Record version: sha256:599fe054a02172945a03b64083a685e2b630e033f23524ed56522a1cfe4b5e44 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-20-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/205/20/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [205-20-15-1](https://asc.understandingaccounting.org/asc/205/20/#205-20-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:53.997Z to 2026-09-09T22:52:53.997Z Record version: sha256:e87a16fb9651812cf975cd9385733293fc82bcf78bfe9dd5dd9c305a0fad01a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic; see Section 205-10-15, with specific transaction qualifications noted below. #### Transactions ##### [205-20-15-2](https://asc.understandingaccounting.org/asc/205/20/#205-20-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:53.997Z to 2026-09-09T22:52:53.997Z Record version: sha256:fdefc1b6b82a5781bff4a17fe367a7cbca46a3ef5fbcc2414e9491b34306dfe5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to either of the following: 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.") or a group of components of an entity that is 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. #### Entities ##### [205-20-15-3](https://asc.understandingaccounting.org/asc/205/20/#205-20-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:53.997Z to 2026-09-09T22:52:53.997Z Record version: sha256:15f94b17c7921782ed96ab22338dfdefb559de09233401b27edf053b7ea35d6b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to oil and gas properties that are accounted for using the full-cost method of accounting as prescribed by the U.S. Securities and Exchange Commission (SEC) (see Regulation S-X, Rule 4-10, Financial Accounting and Reporting for Oil and Gas Producing Activities Pursuant to the Federal Securities Laws and the Energy Policy and Conservation Act of 1975).