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Improving financial reporting about development stage entities.

The Financial Accounting Standards Board issued a proposal intended to improve financial reporting about public and private development stage entities.

The proposal would eliminate the distinction of being a development stage entity--as well as its related disclosure requirements--within U.S. GAAP. This would address stakeholder concerns about the cost and relevance of the additional presentation requirements specific to development stage entities.

Many development stage entities with multiple products under development do not intend to ever manufacture a single product, but rather, may periodically sell the research and development to another business. Pharmaceutical, biotechnology and technology industries are most likely to have longterm development stage entities affected by these requirements and its common for many of these entities to remain in the development stage for several years or even in perpetuity.

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Title Annotation:news&trends
Publication:California CPA
Date:Dec 1, 2013
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