When an organization is going to discontinue operations, or has discontinued operations with respect to a group of assets, certain disclosures are required. These disclosures would be needed if the organization will have no significant continuing involvement in those operations.
- the revenues and expenses relating to those operations need to be removed from normal operations on the statement of operations and the net income of these operations would be presented separately on the statement of operations for the current and prior periods. The net income from these operations would be presented before any extraordinary items.
- the assets and liabilities of those operations would be clearly separated on the balance sheet.
- the notes would describe the circumstances of the discontinuation, including the method and timing of the discontinuation, and the revenues associated with the discontinued operations.