Financial Reporting-Elimination of Special Reporting for Development Stage Entities
In response to input from financial statement users, the Financial Accounting Standards Board (FASB) has recently issued ASU 2014-10, which essentially repeals the complex incremental financial reporting requirements for entities defined as “development stage” under existing GAAP.
Under ASU 2014-10:
- The definition of a development stage entity is removed from the FASB codification Master Glossary
- The requirement of presenting inception-to-date information is eliminated
- The financial statement labeling and specific disclosure requirements related to such entities is eliminated
Effective Date: Annual reporting periods beginning after December 15, 2014 with early application permitted.
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