9/23/2014

FASB Paper
Summary of 2014.08 Update The 2014.08 update first talks about what this update did. The update states “The amendments in this Update address those issues by changing the criteria for reporting discontinued operations and enhancing convergence of the FASB’s and the IASB reporting requirements for discontinued operations”. The main thing that was done with this update was that “The amendments in this Update change the requirements for reporting discontinued operations in Subtopic 205-20.” The update goes into more detail about what are the specific areas that are effected in things such has a business, a non-profit organization, and others. The major classes of line items constituting the pretax profit or loss (or change in net assets for a not-for-profit entity) of the discontinued operation for the periods in which the results of operations of the discontinued operation are presented in the statement where net income is reported (or statement of activities for a not-for-profit entity).
Another change that was done with this update included “The amendments in this Update require a public business entity and a not-forprofit entity that has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market to provide disclosures about a disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation in the financial statements, including”. This changed the way that not-forprofit organizations report their pretax profit or loss, or change in asset for not forprofit. It also says that any noncontrolling interest is classified as held for sale and for all prior periods presented in the statement where net income is reported. The purpose of these updates are to improve the definition of discontinued