ASC

ASC 225-915

Development Stage Entities

225 Income Statement

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In brief

IntroductoryPresentationFinancial statement presentationTransition and effective dates

This subtopic formerly prescribed how a development stage entity presented its income statement — most notably cumulative amounts of revenues and expenses from inception. Every paragraph (225-915-05-1, 15-1, and 45-1) was superseded by ASU 2014-10, which eliminated the concept of a development stage entity from U.S. GAAP. As a result, there are no remaining presentation requirements in ASC 225-915.

Key points (5)
  • All content of this subtopic is superseded: 225-915-05-1 (overview), 225-915-15-1 (scope), and 225-915-45-1 (other presentation matters) were each superseded by Accounting Standards Update No. 2014-10.
  • ASU 2014-10 removed the definition and incremental reporting requirements for development stage entities, so inception-to-date cumulative income statement amounts are no longer required.
  • Entities formerly within the development stage entity scope now follow the same income statement presentation guidance as all other entities (ASC 225 and, currently, ASC 220).
  • Because the paragraphs are superseded, no recognition, measurement, or disclosure rule may be cited from ASC 225-915 in current-GAAP financial statements.
  • Researchers encountering pre-2014 financial statements should consult the superseded ASC 915 guidance and ASU 2014-10's transition provisions (retrospective application) rather than this subtopic.

For students. This is a "dead" subtopic — its only exam-relevant point is that ASU 2014-10 eliminated development stage entity reporting, including cumulative-since-inception income statement amounts. The common mistake is citing old ASC 915/225-915 requirements as if they still apply, or assuming going-concern and risk disclosures were also eliminated (they were not).

development stage entitysuperseded guidanceinception-to-date cumulative amountsincome statement presentationelimination of incremental reporting requirements

Machine-generated study aid for ASC 225-915. Check the source paragraphs below.

225-915-00Status

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225-915-00-1
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Development Stage EntitySupersededAccounting Standards Update No. 2014-1006/10/2014
915-225-05-1SupersededAccounting Standards Update No. 2014-1006/10/2014
915-225-15-1SupersededAccounting Standards Update No. 2014-1006/10/2014
915-225-45-1SupersededAccounting Standards Update No. 2014-1006/10/2014

225-915-05Overview and Background

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225-915-15Scope and Scope Exceptions

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225-915-20Glossary

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225-915-45Other Presentation Matters

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