Host Hotels and Resorts said that under SFAS 144, "we classify the sale of an individual property as a
discontinued operation, regardless of its significance to our portfolio." Similarly, Taubman Centers, Inc., a publicly traded real estate investment trust, noted that under SFAS 144, each of their 25 properties would constitute a
discontinued operation.
Part of the new definition of
discontinued operation is based on elements of the definition of
discontinued operations in IFRS 5, Non-Current Assets Held for Sale and
Discontinued Operations.
As a result of this divestiture, Barry Callebaut expects to report a one-time loss from the
discontinued operation of approximately CHF 65 million ([euro] 54 million/$70 million) for the fiscal year 2011.-2012, which includes the operating result of the
discontinued operation, one-off impairments and other one-off expenses incurred in relation to the transaction.
FAS #144 expanded the
discontinued operation provisions so that more disposal situations would likely trigger the display of
discontinued operations.
sells tape library storage products, but is treated by the company as a
discontinued operation.
SFAS 144 significantly relaxes the criteria for treating an item as a
discontinued operation. Under SFAS 144, a component of an entity consists of operations and cash flows that can be clearly distinguished, operationally and financially, from the rest of the entity.
The company has an agreement to sell Ekco Consumer Plastics to Alpha Holdings of Dallas, and wrote off that business and the loss on disposal as a
discontinued operation. The loss from
discontinued operations totaled $4.8 million in the quarter and $28.3 million for the year.
Analysts consider a
discontinued operation's disclosure of income and expense, cash flows and assets and liabilities vitally important.
A company that does not report a
discontinued operation but reports an extraordinary item or cumulative effect of an accounting change should report basic EPS for net income before extraordinary items or net income before accounting change and net income on the face of the income statement.
CACS is presented as a "
Discontinued Operation" in RADA's financial statements.
