Financial Reporting-Elimination of Special Reporting for Development Stage Entities

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.

For questions or additional information, contact brent@brookslodden.com.