Practical tip: Discontinued operations reporting for a disposal group should continue to be evaluated until the issuance of the financial statements (No. 2010-11)

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The evaluation of whether the operations of a disposal group should be classified as discontinued operations in the statement of operations should be updated through the date the financial statements are issued. New information arising from a change in circumstances occurring after the balance sheet date, but prior to issuance of the financial statements, does not affect the evaluation of whether the disposal group is classified as held for sale at the reporting date. Subsequent events only affect the presentation of a component as discontinued operations in the income statement and not the presentation of a disposal group as held for sale on the balance sheet.  This Practical tip highlights the appropriate accounting treatment along with a practical example.