I am looking at the 2009 10-k of a company that divested a segment of its operations accounting for roughly 16% of total revenue. The 10-k restates the prior year (2008) P&L to reflect the divestiture but I am puzzled as to why the 2008 BS is the same as the BS before divestiture. The footnotes clearly discloses all the assets and liabilities of the divestiture but BS remains the same while P&L changes. Appreciate if anyone can shed some light.
P&L probably didn’t “change”, it just lists it as net income from discontinued operation and removes it from revenue usually the balance sheet might be restated as well (same totals) to break it into assets from discontinued ops