Reporting Discontinued OperationsINTRODUCTIONThe Financial Accounting Standards Board (FASB) issued guidance for reporting discontinued operations on April 10, 2014. The rule reduces the number of dispositions that Companies must report their financial operations as discontinued operations in their financial statements. But they also expand disclosure requirements when discontinued operations are reported. (LLP, 2014) Discontinued operations are assets or components of the business that have been disposed of or are held for sale. The revised standard aims to address the concerns of users of financial statements by modifying the reporting criteria for discontinued operations. The FASB believes that the new standard meets this requirement to the extent that it reduces the number of dispositions that would be included in discontinued operations and, also, because of the increased disclosure requirements, it will provide information that will be useful for financial statements (Financial Accounting Standards Board, April 2014). )'To be a discontinued operation, a component or group of components must represent a strategic change that has (or will have) a major effect on an entity's operations and financial results. Companies should be prepared to use judgment in determining which disposals meet the new definition. Failure to eliminate significant continuing cash flows or involvement in a divested component of an entity's ongoing operations following a divestiture no longer precludes presentation as a discontinued operation. (PWC, 2014)Under the revised standard, “the disposition of a component of an entity or a group of components of an entity shall be reported as discontinued operations if the...... middle paper......standard and help reduce preparer cost. It also improved the usefulness of financial statement decisions and enabled the organization to prepare for expanded reporting requirements.ReferencesReferencesBit, T. (2016). Watercraft. Retrieved from https://www.pwc.com/us/en/energy-mining/publications/assets/pwc-bit-discontinued-operations-accounting-standards.pdfComplete Guide, FR (November 2014). Extracted from file:///C:/Users/Robosap/Downloads/financialreportingdevelopments_bb1886_discontinuedoperations_12november2014.pdfFASB IN FOCUS. (2014). Financial Accounting Standards Board. (April 2014). Updating accounting standards. Financial Accounting Series.LLP, M. (2014). FASB revises reporting requirements.PWC. (June 3, 2014). Data line. Retrieved from “https://www.pwc.com/us/en/cfodirect/assets/pdf/dataline/dataline-2014-08-discontinued-operations.pdf