limited liability company

ASC 272-10 provides financial reporting and presentation guidance for U.S.-organized limited liability entities (LLCs and LLPs) that issue GAAP financial statements. It requires LLC statements to look like partnership statements — equity is labeled "members' equity," headings must clearly identify the entity as an LLC, and a complete set includes a statement of financial position, statement of operations, statement of cash flows, notes, and information on changes in members' equity. It also mandates disclosure of any limitation on members' liability, the classes of member interests and their rights, and a finite life date if applicable.

ASC 323-30 extends equity method concepts to investments in unincorporated entities—partnerships, unincorporated joint ventures (undivided interests in ventures), and limited liability companies—that are outside the literal scope of Subtopic 323-10 (which addresses common stock of corporations). Investors generally apply the equity method by analogy when they can exercise significant influence over the investee (323-30-25-1), including the intra-entity profit elimination rules of 323-10-35-7. An LLC that maintains a specific ownership account for each investor is treated like a limited partnership interest in deciding between Topic 321 and the equity method (323-30-35-3).