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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ADVICE

Strict Held-For-Sale Checklist

Meet all six held-for-sale criteria at the balance sheet date before classifying assets and liabilities as held for sale.
Document approvals, meeting minutes, and dates carefully because timing and judgment are scrutinized by auditors.

ADVICE

Handle Post-Close Approvals Carefully

If held-for-sale criteria are met after the balance sheet date, treat that as a non-recognized subsequent event and disclose appropriately.
Also reassess impairment triggers because anticipated sale proceeds may be lower than carrying amounts.

INSIGHT

Immediate Post-Acquisition Sales

For acquisitions intended for immediate sale, you can classify the acquired group as held for sale at acquisition if sale completes within a short period.
PwC commonly uses a three-month benchmark to support that assessment at acquisition date.

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In today’s episode, we explore the accounting implications of selling a business—an increasingly relevant topic in today’s market. From initial considerations through the final disposition, we break down key accounting judgments, classification, and presentation requirements.

In this episode, we discuss:

2:32 – Held-for-sale criteria
14:00 – Accounting implications of held-for-sale classification
19:25 – Accounting for the gain or loss on the sale of a business
25:50 – Discontinued operations criteria
33:00 – Discontinued operations presentation requirements

For more information, check out chapter 6 of our Property, plant, equipment and other assets guide, chapter 8 and 27 of our Financial statement presentation guide. Also, listen to our previous podcast episode, Presenting discontinued operations.

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About our guests

Matt Sabatini is a partner in PwC's National Office who helps clients and engagement teams navigate the accounting and financial reporting for complex transactions. He specializes in the accounting for M&A, consolidations, corporate reorganizations, recapitalizations, joint ventures, and other investments.

Katie Driessen is a partner in PwC’s National Office where she assists companies with complex accounting and financial reporting issues related to capital markets transactions, including acquisitions, divestitures, and capital raises. Katie recently returned to PwC following two years working in the Office of the Chief Accountant at the SEC.

About our host

Heather Horn is the PwC National Office Sustainability and Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com

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