Therefore, as per FASB ASC 205-20-65-1, if a discontinued operation includes an equity method investment, or a business or nonprofit activity that is classified as held for sale on acquisition, a more limited set of disclosures is required. The assets and liabilities of discontinued operations that are held for sale must be measured identical to other assets that are held for sale. However, “all initial or subsequent adjustments to the carrying value of the discontinued operation as a result of such measurement” that meet the requirements of the new guidance must be classified in discontinued operations (EY, 2015). When disposals of components of an entity do not meet the criteria of a discontinued operation, the disposals are within the scope of ASC 360-10 and must be disposed of
Therefore, as per FASB ASC 205-20-65-1, if a discontinued operation includes an equity method investment, or a business or nonprofit activity that is classified as held for sale on acquisition, a more limited set of disclosures is required. The assets and liabilities of discontinued operations that are held for sale must be measured identical to other assets that are held for sale. However, “all initial or subsequent adjustments to the carrying value of the discontinued operation as a result of such measurement” that meet the requirements of the new guidance must be classified in discontinued operations (EY, 2015). When disposals of components of an entity do not meet the criteria of a discontinued operation, the disposals are within the scope of ASC 360-10 and must be disposed of