Component of an Entity

For discontinued operations reporting, a component of an entity is a part of an entity (the lowest level) for which operations and cash flows can be clearly distinguished, both operationally and for financial reporting purposes, from the rest of the entity. A component of an entity may be an operating segment, a reportable segment (as those terms are defined in segment reporting), a reporting unit (as that term is defined in goodwill impairment testing), a subsidiary, or an asset group. See also asset group and held for sale and discontinued operations.