Partnership Dissolution
Accounting glossary · Understand, connect, apply
Partnership dissolution is a change in the relationship among partners that may lead to reconstitution or winding up, depending on the agreement and law.
Example
A partner retires and the remaining partners continue the business under a revised agreement.
Remember the difference
Dissolution does not always mean that operations stop immediately. Liquidation concerns winding up and settling the business.
Updated 3 November 2026. Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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