The FAPC believes that the losses should be recognized as soon as a plan for disposal is approved. The FAPC agrees with the application of the proposed Impairments of Assets standard, as it would be triggered on approval and announcement of a plan for discontinuance. Presentation and Disclosure 3. The FAPC agrees with these disclosure requirements. Paragraph 38 is not clear.
Enterprises can meet their requirements by providing summarized cash flow data.
Discontinuations also affect pension and lease obligations and derivative and hedging transactions. The FAPC strongly recommends explicit disclosure of these effects. The FAPC believes that the revenues, expenses, assets, and liabilities of all operations to be discontinued should be separated when a plan for disposal is approved. This approach segregates continuing operations and informs users of operations that are not expected to contribute to the earnings and cash flows of the firm in the future. The FAPC would also require footnote disclosure of the status of plans for disposal or discontinuance of all material discontinuing operations that have not been completed within a year of the segregation of their revenues, expenses, assets, and liabilities on the financial statements.