FASB standard on the liquidation basis of accounting.

The Financial Accounting Standards Board issued an Accounting Standards Update IASU] that improves financial reporting by clarifying when and how public and private companies, and nonprofit organizations should prepare statements using the liquidation basis of accounting. ASU No. 2013-07. Presentation of Financial Statements (Topic 205]: Liquidation Basis of Accounting, is effective for interim and annual reporting periods beginning after Dec. 15,2013, with early adoption permitted.

Under the new standard, an organization will be required to prepare its financial statements using the liquidation basis of accounting when liquidation is "imminent." Liquidation is considered imminent when the likelihood is remote that...