We continue our month of podcasts focused on financial statement presentation.

In this episode, host Heather Horn sits down with Jay Seliber, a partner in PwC’s National Office specializing in business combinations, to share insights on the accounting and reporting considerations for discontinued operations. Together, they unpack the judgments and practical challenges in navigating discontinued operations, an area of increased focus given the current economic environment in which many companies are considering disposing of portions of their businesses.

In this episode, you’ll hear:

• 2:27 – An overview of the criteria and qualifications for discontinued operations, including highlights of the key areas of judgment, timing considerations, and implications for businesses
• 13:05 – Insights on the qualifications for held-for-sale treatment 
• 18:40 – Key questions on presentation and classification of discontinued operations after meeting the gating criteria, including:
  • 19:01 – Impact to the balance sheet and income statement
  • 21:45 – Debt and income tax implications
  • 25:25 – Impact on earnings per share (EPS) computations
  • 28:55 – Statement of cash flows implications
• 30:50 – Overview of the SEC filing requirements related to discontinued operations
• 36:16 – Final advice for preparers on presenting discontinued operations

For more information, read chapter 27 of our Financial statement presentation guide and chapter 12 of our Income taxes guide. Additionally, follow this podcast on your favorite podcast app for more episodes.

Jay Seliber is a partner in PwC’s National office. He leverages over 30 years of experience to help clients with their most complex accounting matters, particularly in the areas of mergers and acquisitions, revenue recognition, stock compensation, earnings per share, employee benefits, restructurings, impairments, and financing transactions.

Heather Horn is PwC’s National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series. With over 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected].

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