PwC's accounting podcast Sale of a business – Held for sale criteria, disc ops, and more
Oct 21, 2025
In this discussion, Matt Sabatini and Katie Driessen from PwC tackle the intricate world of selling businesses. Matt breaks down the held-for-sale criteria and explains the essential judgments needed for classification. Katie shares insights on measuring disposal groups and the implications of accounting for gains or losses. They also delve into discontinued operations, clarifying what qualifies and the necessary presentations for their financial statements. Their expertise sheds light on navigating these complex transactions effectively.
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Held-For-Sale Is A Balance-Sheet Move
- Held-for-sale is primarily a balance-sheet classification that reclassifies all assets and liabilities of the disposal group.
- Measure the disposal group at the lower of carrying amount or fair value less costs to sell and stop depreciating individual assets.
Goodwill Rules For Disposals
- If disposing an entire reporting unit, include all reportable goodwill in the disposal group; otherwise allocate goodwill by relative fair value if the disposal constitutes a business.
- Stranded goodwill can arise when selling assets that were part of a prior acquisition.
Use ASC 810 For Gain/Loss On Business Sales
- Determine whether the sale causes loss of control under ASC 810 to compute gain or loss on sale correctly.
- Compare fair value of consideration plus retained interest and NCI to carrying amounts of deconsolidated assets and liabilities.
