# ASC 205-20-45: Presentation of Financial Statements — Discontinued Operations — 45 Other Presentation Matters Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/205/20/#45-other-presentation-matters) 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): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:98bac54cd6b9830c0988590d33ea9eca7ce2a8a683992f3fabbe5e4a990561b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-20-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/205/20/#45-other-presentation-matters) SEC content: no ##### [205-20-45-1](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:a994c3fe35cec0e14cbc4ffebf701413acff3ba87827cbde81c9b1519e3747f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-08](https://asc.understandingaccounting.org/updates/asu-2014-08/). #### What Is a Discontinued Operation? ##### [205-20-45-1A](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1A) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:a5333e1fcc11aa1b42b3a9293ff74f273a058067b2800f45397bd4a2dd92bcfc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A discontinued operation may include 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, or 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."). ##### [205-20-45-1B](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1B) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:dbce2e4c6054ddbbaf250ab72484597eadb6c2b18c346b8fb1b8ea2b2289b2bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A disposal of a component of an entity or a group of components of an entity shall be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when any of the following occurs: 1. a The component of an entity or group of components of an entity meets the criteria in paragraph [205-20-45-1E](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1E) to be classified as held for sale. 2. b The component of an entity or group of components of an entity is disposed of by sale. 3. c The component of an entity or group of components of an entity is disposed of other than by sale in accordance with paragraph [360-10-45-15](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-15) (for example, by abandonment or in a distribution to owners in a spinoff). ##### [205-20-45-1C](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1C) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:64a2642b8336de682b3cdb92162b1e0a8d80801ad403dda2e2c2aee22beb9966 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples of a strategic shift that has (or will have) a major effect on an entity's operations and financial results could include a disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of an entity (see paragraphs [205-20-55-83 through 55-101](https://asc.understandingaccounting.org/asc/205/20/#205-20-55-83) for Examples). ##### [205-20-45-1D](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1D) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:063f443b9243579bf29b6ed86dac1b20ab2c08287a2ffad1b65bb62a0318dd3a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A business or nonprofit activity 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."), meets the criteria in paragraph [205-20-45-1E](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1E) to be classified as held for sale is a discontinued operation. If the one-year requirement in paragraph [205-20-45-1E(d)](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1E) is met (except as permitted by paragraph [205-20-45-1G](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1G)), a business or nonprofit activity shall be classified as held for sale as a discontinued operation at the acquisition date or the formation date if the other criteria in paragraph [205-20-45-1E](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1E) are probable of being met within a short period following the acquisition date or the formation date (usually within three months). ##### [205-20-45-1E](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1E) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:2dfb9963e3d321f3ab5d4fb80c6d6278d85e1733e1e43380b2c10d48b40895f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A component of an entity or a group of components of an entity, or a business or nonprofit activity (the entity to be sold), shall be classified as held for sale in the period in which all of the following criteria are met: 1. a Management, having the authority to approve the action, commits to a plan to sell the entity to be sold. 2. b The entity to be sold is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such entities to be sold. (See Examples 5 through 7 \[paragraphs [360-10-55-37 through 55-42](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-37) \], which illustrate when that criterion would be met.) 3. c An active program to locate a buyer or buyers and other actions required to complete the plan to sell the entity to be sold have been initiated. 4. d The sale of the entity to be sold is [probable](https://asc.understandingaccounting.org/glossary/p/#probable "The future event or events are likely to occur."), and transfer of the entity to be sold is expected to qualify for recognition as a completed sale, within one year, except as permitted by paragraph [205-20-45-1G](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1G). (See Example 8 \[paragraph [360-10-55-43](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-43)\], which illustrates when that criterion would be met.) 5. e The entity to be sold is being actively marketed for sale at a price that is reasonable in relation to its current fair value. The price at which an entity to be sold is being marketed is indicative of whether the entity currently has the intent and ability to sell the entity to be sold. A market price that is reasonable in relation to fair value indicates that the entity to be sold is available for immediate sale, whereas a market price in excess of fair value indicates that the entity to be sold is not available for immediate sale. 6. f Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. ##### [205-20-45-1F](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1F) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:108298fab418e22da4199fb8c3a79ddfabfc39319eebc98cf7ab5c776bfa9b57 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If at any time the criteria in paragraph [205-20-45-1E](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1E) are no longer met (except as permitted by paragraph [205-20-45-1G](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1G)), an entity to be sold that is classified as held for sale shall be reclassified as held and used and measured in accordance with paragraph [360-10-35-44](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-44). ##### [205-20-45-1G](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1G) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:8fe321f98d8b0c4e7c0c3f4fcab2c538e6d3d57f591842e45eb1d6827f55b359 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Events or circumstances beyond an entity's control may extend the period required to complete the sale of an entity to be sold beyond one year. An exception to the one-year requirement in paragraph [205-20-45-1E(d)](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1E) shall apply in the following situations in which those events or circumstances arise: 1. a If at the date that an entity commits to a plan to sell an entity to be sold, the entity reasonably expects that others (not a buyer) will impose conditions on the transfer of the entity to be sold that will extend the period required to complete the sale and both of the following conditions are met: 1. 1 Actions necessary to respond to those conditions cannot be initiated until after a [firm purchase commitment](https://asc.understandingaccounting.org/glossary/f/#firm-purchase-commitment "A firm purchase commitment is an agreement with an unrelated party, binding on both parties and usually legally enforceable, that meets both of the following conditions: It specifies all significant terms, including the price and timing of the transaction. It includes a disincentive for nonperformance that is sufficiently large to make performance probable.") is obtained. 2. 2 A firm purchase commitment is probable within one year. (See Example 9 \[paragraph [360-10-55-44](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-44)\], which illustrates that situation.) 2. b If an entity obtains a firm purchase commitment and, as a result, a buyer or others unexpectedly impose conditions on the transfer of an entity to be sold previously classified as held for sale that will extend the period required to complete the sale and both of the following conditions are met: 1. 1 Actions necessary to respond to the conditions have been or will be timely initiated. 2. 2 A favorable resolution of the delaying factors is expected. (See Example 10 \[paragraph [360-10-55-46](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-46)\], which illustrates that situation.) 3. c If during the initial one-year period, circumstances arise that previously were considered unlikely and, as a result, an entity to be sold previously classified as held for sale is not sold by the end of that period and all of the following conditions are met: 1. 1 During the initial one-year period, the entity initiated actions necessary to respond to the change in circumstances. 2. 2 The entity to be sold is being actively marketed at a price that is reasonable given the change in circumstances. 3. 3 The criteria in paragraph [205-20-45-1E](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1E) are met. (See Example 11 \[paragraph [360-10-55-48](https://asc.understandingaccounting.org/asc/360/10/#360-10-55-48)\], which illustrates that situation.) ##### [205-20-45-2](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:b1f0443b9117304d23c6e87ed978a695c27e6af0c869f656e907cacfe77d7a5c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-08](https://asc.understandingaccounting.org/updates/asu-2014-08/). #### Statement in Which Net Income Is Reported ##### [205-20-45-3](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:b0e72b14d4d35804595ee954bade650d1a4b5d4e7ddd45d138dcfbde236422d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The statement in which net income of a business entity is reported or the statement of activities of a not-for-profit entity (NFP) for current and prior periods shall report the results of operations of the discontinued operation, including any gain or loss recognized in accordance with paragraph [205-20-45-3C](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-3C), in the period in which a discontinued operation either has been disposed of or is classified as held for sale. ##### [205-20-45-3A](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-3A) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:74a3b183e5a9bb672f9d6cf5d01544b05ce58fe2146b3ce5fd58e96e005fd17b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The results of all discontinued operations, less applicable income taxes (benefit), shall be reported as a separate component of income. For example, the results of all discontinued operations may be reported in the statement where net income of a business entity is reported as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-B3EC9B47-23DB-4075-9FCF-60F2FBA24286-low.gif) Income from continuing operations before income taxes $XXXX Income taxes XXX Income from continuing operations $XXXX Discontinued operations (Note X) Loss from operations of discontinued Component X (including loss on disposal of $XXX) XXXX Income tax benefit XXXX Loss on discontinued operations XXXX Net income $XXXX ##### [205-20-45-3B](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-3B) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:0d53828b062167bd145e7229536378131beeb01db1b768ef0cdad526e5ebad20 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A gain or loss recognized on the disposal (or loss recognized on classification as held for sale) shall be presented separately on the face of the statement where net income is reported or disclosed in the notes to financial statements (see paragraph [205-20-50-1(b)](https://asc.understandingaccounting.org/asc/205/20/#205-20-50-1)). ##### [205-20-45-3C](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-3C) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:2bac1d32d95347cb44ca440bcd4b4c56e54e1c47387a317fabb48450b408c98f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A gain or loss recognized on the disposal (or loss recognized on classification as held for sale) of a discontinued operation shall be calculated in accordance with the guidance in other Subtopics. For example, if a discontinued operation is within the scope of Topic 360 on property, plant, and equipment, an entity shall follow the guidance in paragraphs [360-10-35-37 through 35-45](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-37) and [360-10-40-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-5) for calculating the gain or loss recognized on the disposal (or loss on classification as held for sale) of the discontinued operation. ##### [205-20-45-4](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:85e0f2fe15c6d60389d6725de6f0c6e0d6f941e953cd80a40f2d3cd20817ccfd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Adjustments to amounts previously reported in discontinued operations in a prior period shall be presented separately in the current period in the discontinued operations section of the statement where net income is reported. ##### [205-20-45-5](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:81c8a7fb433588865b0b11755f5914f94d55a6c46edd9fd9caaed719bb62c442 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples of circumstances in which those types of adjustments may arise include the following: 1. a The resolution of contingencies that arise pursuant to the terms of the disposal transaction, such as the resolution of purchase price adjustments and indemnification issues with the purchaser 2. b The resolution of contingencies that arise from and that are directly related to the operations of the discontinued operation before its disposal, such as environmental and product warranty obligations retained by the seller 3. c The [settlement](https://asc.understandingaccounting.org/glossary/s/#settlement-of-a-pension-or-postretirement-benefit-obligation "A transaction that is an irrevocable action, relieves the employer (or the plan) of primary responsibility for a pension or postretirement benefit obligation, and eliminates significant risks related to the obligation and the assets used to effect the settlement.") of employee benefit plan obligations (pension, postemployment benefits other than pensions, and other postemployment benefits), provided that the settlement is directly related to the disposal transaction. A settlement is directly related to the disposal transaction if there is a demonstrated direct cause-and-effect relationship and the settlement occurs no later than one year following the disposal transaction, unless it is delayed by events or circumstances beyond an entity's control (see paragraph [205-20-45-1G](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1G)). ##### [205-20-45-6](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:7d7c48eb173b2d8a45c3342149473463b3f12850b2bc1e47b5a406789dbcbe22 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Interest on debt that is to be assumed by the buyer and interest on debt that is required to be repaid as a result of a disposal transaction shall be allocated to discontinued operations. ##### [205-20-45-7](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:59e26025b89701b886ddd07e651ca7bbf977d5728ae43daf853e7300597ba898 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The allocation to discontinued operations of other consolidated interest that is not directly attributable to or related to other operations of the entity is permitted but not required. Other consolidated interest that cannot be attributed to other operations of the entity is allocated based on the ratio of net assets to be sold or discontinued less debt that is required to be paid as a result of the disposal transaction to the sum of total net assets of the consolidated entity plus consolidated debt other than the following: 1. a Debt of the discontinued operation that will be assumed by the buyer 2. b Debt that is required to be paid as a result of the disposal transaction 3. c Debt that can be directly attributed to other operations of the entity. ##### [205-20-45-8](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:6d675dd0e045477317c54e29d139f1858ef554819988daf14a41d52d59894ecc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This allocation assumes a uniform ratio of consolidated debt to equity for all operations (unless the assets to be sold are atypical—for example, a finance company—in which case a normal debt-equity ratio for that type of business may be used). If allocation based on net assets would not provide meaningful results, then the entity shall allocate interest to the discontinued operations based on debt that can be identified as specifically attributed to those operations. This guidance applies to income statement presentation of both continuing and discontinued operations (including the presentation of the gain or loss on disposal of a component of an entity). A decision as to interest allocation shall be applied consistently to all discontinued operations. ##### [205-20-45-9](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:ab26f4a898c3f9f981243dc82456810ff0b6e4853f8c6103696b31fcb5072797 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. General corporate overhead shall not be allocated to discontinued operations. #### Statement of Financial Position ##### [205-20-45-10](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:381b08eef40417eaffb9b2f48b061b28400a42e9161e1dcd2bcd5a2e1e960284 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the period(s) that a discontinued operation is classified as held for sale and for all prior periods presented, the assets and liabilities of the discontinued operation shall be presented separately in the asset and liability sections, respectively, of the statement of financial position. Those assets and liabilities shall not be offset and presented as a single amount. If a discontinued operation is part of a [disposal group](https://asc.understandingaccounting.org/glossary/d/#disposal-group "A disposal group for a long-lived asset or assets to be disposed of by sale or otherwise represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction. A disposal group may include a discontinued operation along with other assets and liabilities that are not part of the discontinued operation.") that includes other assets and liabilities that are not part of the discontinued operation, an entity may present the assets and liabilities of the disposal group separately in the asset and liability sections, respectively, of the statement of financial position. If a discontinued operation is disposed of before meeting the criteria in paragraph [205-20-45-1E](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1E) to be classified as held for sale, an entity shall present the assets and liabilities of the discontinued operation separately in the asset and liability sections, respectively, of the statement of financial position for the periods presented in the statement of financial position before the period that includes the disposal. When an entity separately presents in prior periods the assets and liabilities of a discontinued operation, the entity shall not apply the guidance in paragraph [360-10-35-43](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-43) as if those assets and liabilities were held for sale in those prior periods. ##### [205-20-45-11](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T22:53:00.884Z to 2026-09-09T22:53:00.884Z Record version: sha256:7d20f6996b00fedde69240d1595fe7a0446549a2a56be99a9fd0de2aa1e00c3d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For any discontinued operation initially classified as held for sale in the current period, an entity shall either present on the face of the statement of financial position or disclose in the notes to financial statements (see paragraph [205-20-50-5B(e)](https://asc.understandingaccounting.org/asc/205/20/#205-20-50-5B)) the major classes of assets and liabilities of the discontinued operation classified as held for sale for all periods presented in the statement of financial position. Any loss recognized on a discontinued operation classified as held for sale in accordance with paragraphs [205-20-45-3B through 45-3C](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-3B) shall not be allocated to the major classes of assets and liabilities of the discontinued operation.