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ASC 360 provides guidance for when to classify long-lived assets as held for sale.

Excerpt from ASC 360-10-45-9

A long-lived asset (disposal group) to be sold shall be classified as held for sale in the period in which all of the following criteria are met:
  1. Management, having the authority to approve the action, commits to a plan to sell the asset (disposal group).
  2. The asset (disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (disposal groups).
  3. An active program to locate a buyer and other actions required to complete the plan to sell the asset (disposal group) have been initiated.
  4. The sale of the asset (disposal group) is probable, and transfer of the asset (disposal group) is expected to qualify for recognition as a completed sale, within one year, except as permitted by paragraph 360-10-45-11.
  5. The asset (disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value. The price at which a long-lived asset (disposal group) is being marketed is indicative of whether the entity currently has the intent and ability to sell the asset (disposal group). A market price that is reasonable in relation to fair value indicates that the asset (disposal group) is available for immediate sale, whereas a market price in excess of fair value indicates that the asset (disposal group) is not available for immediate sale.
  6. Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Refer to PPE 5.3.1 for further details on how to apply the above requirements.
Once a long-lived asset (disposal) group, including an asset group considered a component of a reporting entity, meets these requirements, it is subject to the presentation and disclosure requirements in ASC 360-10-50-3.

ASC 360-10-50-3

For any period in which a long-lived asset (disposal group) either has been disposed of or is classified as held for sale (see paragraph 360-10-45-9), an entity shall disclose all of the following in the notes to financial statements:
  1. A description of the facts and circumstances leading to the disposal or the expected disposal.
  2. The expected manner and timing of that disposal. 
  3. The gain or loss recognized in accordance with paragraphs 360-10-35-37 through 35-45 and 360-10-40-5.
  4. If not separately presented on the face of the statement where net income is reported (or in the statement of activities for a not-for-profit entity), the caption in the statement where net income is reported (or in the statement of activities for a not-for-profit entity) that includes that gain or loss. 
  5. If not separately presented on the face of the statement of financial position, the carrying amount(s) of the major classes of assets and liabilities included as part of a disposal group classified as held for sale. Any loss recognized on the disposal group classified as held for sale in accordance with paragraphs 360-10-35-37 through 35-45 and 360-10-40-5 shall not be allocated to the major classes of assets and liabilities of the disposal group. 
  6. If applicable, the segment in which the long-lived asset (disposal group) is reported under Topic 280 on segment reporting.

In accordance with ASC 360-10-45-14, a long-lived asset classified as held for sale (but that does not meet the criteria for presentation as a discontinued operation in accordance with ASC 205-20-45-10) should be presented separately on the balance sheet of the current period. The prior period comparative balance sheet, if any, does not need to be recast. Refer to FSP 27 for the presentation and disclosure requirements associated with disposal groups classified as held for sale that qualify as discontinued operations.
The assets and liabilities of a disposal group classified as held for sale should not be offset or presented as a single amount; rather, those assets and liabilities should be presented separately in the asset and liability sections of the balance sheet. For example, captions such as current assets held for sale, noncurrent assets held for sale, current liabilities held for sale and noncurrent liabilities held for sale could be shown. The major classes of assets and liabilities classified as held for sale either should be presented separately on the face of the balance sheet or disclosed in the notes to financial statements (ASC 360-10-50-3(e)). In general, when assessing whether an asset is current, reporting entities may consider the guidance in ASC 210-10-45-1 through ASC 210-10-45-4. To classify all assets and liabilities held for sale as current, reporting entities may need to consider whether the disposal is expected to be consummated within one year of the balance sheet date and whether the reporting entity does not expect to use the sale proceeds to reduce long-term borrowings. If the sale proceeds are not expected to be used to pay down long-term borrowings, current classification may be acceptable.
Individually significant disposal not eligible for discontinued operations
In addition to the disclosures in ASC 360-10-50-3, there may be circumstances in which a long-lived asset (disposal group) includes an individually significant component of a reporting entity that either has been disposed of or is classified as held for sale, but does not meet the criteria for presentation as a discontinued operation in accordance with ASC 205-20. In such circumstances, additional disclosures are required in accordance with ASC 360-10-50-3A.

Excerpt from ASC 360-10-50-3A

  1. For a public business entity and a not-for-profit entity that has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market, both of the following:
    1. The pretax profit or loss (or change in net assets for a not-for-profit entity) of the individually significant component of an entity for the period in which it is disposed of or is classified as held for sale and for all prior periods that are presented in the statement where net income is reported (or statement of activities for a not-for-profit entity) calculated in accordance with paragraphs 205-20-45-6 through 45-9             
    2. If the individually significant component of an entity includes a noncontrolling interest, the pretax profit or loss (or change in net assets for a not-for-profit entity) attributable to the parent for the period in which it is disposed of or is classified as held for sale and for all prior periods that are presented in the statement where net income is reported (or statement of activities for a not-for-profit entity).
  2. For all other entities, both of the following:
    1. The pretax profit or loss (or change in net assets for a not-for-profit entity) of the individually significant component of an entity for the period in which it is disposed of or is classified as held for sale calculated in accordance with paragraphs 205-20-45-6 through 45-9             
    2. If the individually significant component of an entity includes a noncontrolling interest, the pretax profit or loss (or change in net assets for a not-for-profit entity) attributable to the parent for the period in which it is disposed of or is classified as held for sale.

All reporting entities must provide the disclosures for the initial period in which an individually significant component is sold or classified as held for sale. An individually significant component that is held for sale should continue to provide the disclosures in each reporting period that it remains held for sale. Public business entities and certain not-for-profit entities must also include comparative disclosures for all periods presented in the income statement.
There is no guidance on how to evaluate whether an individual component is significant or whether to consider the gain or loss on disposal when determining significance. Reporting entities must exercise judgment in assessing significance and should consider both quantitative and qualitative factors about the effect of the disposal on their balance sheet, income statement, and statement of cash flows. Reporting entities should also consider whether disclosure should be provided when multiple disposals of individually insignificant components occur in the same reporting period.
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