In what can be seen as a cruel irony in the midst of the current financial crises, the Financial Accounting Standards Board has issued a proposed staff position - 144-d, Amending the Criteria for Reporting a Discontinued Operation.The proposal, issued as an exposure draft, redefines "discontinued operation" and matches a simultaneous proposal issued by the International Accounting Standards Board. The proposals also establish identical new disclosure requirements. The new definition would no longer include certain subsidiaries and asset groups.
"This project originated as part of the joint Financial Statement Presentation Project. FASB and IASB noted that the financial statement presentation project should result in a converged and improved presentation of discontinued operations," explained FASB fellow David Leverenz. "However, the boards acknowledged that there would be a lack of comparability until the definitions of a discontinued operation were converged."
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