FASB to Alter Reporting for Development Stage Companies
FASB has agreed to work on decreasing financial reporting complexity for development stage companies. FASB defines such companies as those which devote substantially all efforts to establishing a new business and:
- Have not begun planned principal operations; or
- Have begun planned principal operations without producing significant revenue.
Under existing Generally Accepted Accounting Principles (“GAAP”), development-stage entities must present the same basic financial statements as established companies, applying the same standards of measurement and recognition, and presenting accumulated income statement line items, cash flows, and equity transactions. By agreeing to consider changes, FASB is agreeing that such items are less relevant and not cost-justified for these entities.
Renee Howdeshell
Renee Howdeshell is a founding member of Fulcrum Inquiry, an accounting, finance and economic consulting firm that performs damage analyses for commercial litigation, forensic accountings, royalty & distribution audits, financial investigations, and business valuations. Ms. Howdeshell holds a degree in Finance and Marketing from the University of Virginia's McIntire School of Commerce and is a Certified Public Accountant (CPA) and a Certified Fraud Examiner (CFE). She has testified as an expert witness in federal court, CA state court and arbitration regarding the results of her work. She can be reached at (213) 787-4112 and her resume is available at www.fulcrum.com.
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