Development Stage Entities

ASC 915 once housed the incremental reporting requirements for "development stage entities" — entities devoting substantially all efforts to establishing a new business with no principal operations or no significant revenue — which had to label themselves as such and present inception-to-date cumulative amounts of revenues, expenses, cash flows, and equity transactions. ASU 2014-10 superseded the entire subtopic: the overview and background (915-10-05-1 and 05-2) and the scope paragraphs (915-10-15-1 through 15-5) were eliminated, so no entity is now within the scope of Topic 915, and the transition paragraph 915-10-65-1 was itself superseded on 06/23/2016 once the transition period ended. The same ASU also amended the variable interest entity guidance in Topic 810. The single most important takeaway is that ASC 915 is now an empty shell — former development stage entities apply the same recognition, measurement, and presentation guidance as every other reporting entity.

Subtopics

1. 10Overall5 ¶

   ASC 915-10 formerly set out the "Overall" guidance for development stage entities — entities devoting substantially all efforts to establishing a new business that had no principal operations or no significant revenue. All of its substantive content (scope, background, and the transition paragraph) was superseded by ASU 2014-10, which eliminated the incremental reporting requirements for development stage entities; the transition guidance in 915-10-65-1 was itself superseded on 06/23/2016 after the transition period ended. The subtopic is now an empty shell with no operative U.S. GAAP requirements.

   00051565