FAR Income from discontinued Operations

Question 1

What are the conditions for the discontinue rule to apply(Income from discontinuing operations)

Answer 1

1. Management commits to a plan to sell the component
2. The component is available for immediate sale in its present condition
3. The sale of the component is probable and expected to be completed within 1 year
4. The component is being actively marketed and
5. Actions required to complete the sale make it unlikely that significant changes to the plan will be made or that the plan will be withdrawn