Ask Joey ™ a Question

How should a company value a discontinued component that is being held-for-sale?

The discontinued component should be held as the lower of its book value or recoverable amount, which his calculated as fair value less costs to sell.

For example, if Mom and Dad Printer Company have the following information for its discontinued entity that is being held-for-sale:

How should Mom and Dad Printer Company measure this component that is being held-for-sale?


You might also be interested in...

  • What are the requirements for a company to list a discontinued component as held-for-sale?

    There are certain requirements that must be met in order for a company to classify a discontinued component as held-for-sale:

  • What is included in the discontinued operations gain or loss on the income statement?

    For an item to be classified as a discontinued operation, the event needs must meet the definition of a strategic shift. When a component is designated as discontinued, there are three different factors that must be included in the overall net loss on the discontinued entity:

  • What is the definition of a component under US GAAP for discontinued operations?

    A component that is deemed discontinued describe components of an organization or a group of components. Generally, these components will be consistent of reportable segments, operating segments, reporting units, or subsidiaries.