ASC

ASC 230-915

Development Stage Entities

230 Statement of Cash Flows

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In brief

IntroductoryPresentationCash flowsTransition and effective datesFinancial statement presentation

ASC 230-915 formerly required a development stage entity to present inception-to-date (cumulative) amounts in its statement of cash flows in addition to the amounts for the current period. Every paragraph in the subtopic (230-915-05-1, 15-1, and 45-1) was superseded by ASU 2014-10, which eliminated the development stage entity reporting concept from U.S. GAAP. As a result, entities formerly in the development stage now prepare a statement of cash flows under ASC 230 exactly like any other entity, with no cumulative-since-inception column.

Key points (5)
  • All content of ASC 230-915 — paragraphs 230-915-05-1, 230-915-15-1, and 230-915-45-1 — has been superseded by Accounting Standards Update No. 2014-10.
  • ASU 2014-10 removed the incremental reporting requirements unique to development stage entities, including the inception-to-date cash flow information previously required by 230-915-45-1.
  • Because the subtopic is empty, a development stage entity's cash flow statement is governed solely by the general requirements of ASC 230 (operating, investing, and financing classifications).
  • No scope guidance remains in 230-915-15, so there is no separate class of entity to which special cash flow presentation applies.
  • Students should treat this subtopic as historical: it is retained in the Codification only as a superseded shell for reference and transition purposes.

For students. The takeaway is simply that development stage entity reporting no longer exists: ASU 2014-10 wiped out the inception-to-date cash flow column. The common mistake is citing old pre-2014 guidance or textbooks that still require cumulative-since-inception disclosures for start-up companies.

development stage entitysuperseded guidanceinception-to-date informationstatement of cash flowscumulative amounts since inceptionpresentation requirements

Machine-generated study aid for ASC 230-915. Check the source paragraphs below.

230-915-00Status

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230-915-00-1
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Development Stage EntitySupersededAccounting Standards Update No. 2014-1006/10/2014
915-230-05-1SupersededAccounting Standards Update No. 2014-1006/10/2014
915-230-15-1SupersededAccounting Standards Update No. 2014-1006/10/2014
915-230-45-1SupersededAccounting Standards Update No. 2014-1006/10/2014

230-915-05Overview and Background

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230-915-15Scope and Scope Exceptions

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230-915-20Glossary

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230-915-45Other Presentation Matters

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