The FASB decided in February to direct the FASB staff
to draft a final Accounting Standards Update that will eliminate
the special accounting treatment for development stage entities.
The final update is scheduled to be issued in the second quarter of
2014.
The proposed FASB Accounting Standards Update was
issued in November 2013 in response to a Private Company Council
(PCC) recommendation that development stage entities not be
required to provide the inception-to-date income statement and
certain other required GAAP disclosures for development stage
entities. The elimination of the special accounting treatment means
that there will be no accounting or reporting differences between
development stage entities and other operating entities. In
addition to affecting development stage entities, the proposed
update, when adopted, will simplify the consolidation analysis by
an entity that owns an interest in the development stage entity by
eliminating the requirement to
