The US Financial Accounting Standards Board (FASB) has issued a standard update aimed at improving financial reporting about discontinued operations and intended to achieve greater convergence with IFRS.
FASB’s proposed Accounting Standards Update (ASU) ‘Presentation of Financial Statements (Topic 205): Reporting Discontinued Operations’ includes additional requirements to disclosure operations such as operating, investing and financing cash flows.
FASB chairman Leslie Seidman said investors are concerned that "too many" disposals of assets qualify for discontinued operations presentation, which makes current rules more "costly and difficult to apply".
"The Board is seeking stakeholder input on changes intended to capture only those disposals that represent major strategic shifts as discontinued operations and to provide enhanced disclosures about the financial effects of discontinued operations," she said.
The FASB affirmed in a statement the proposed guidance could also achieve greater convergence with IFRS 5.
The deadline for comment is 30 August.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataRelated link
Financial Accounting Standards Board
