Improving financial reporting about development stage entities.

• Position: News&trends

The Financial Accounting Standards Board issued a proposal intended to improve financial reporting about public and private development stage entities.

The proposal would eliminate the distinction of being a development stage entity--as well as its related disclosure requirements--within U.S. GAAP. This would address stakeholder concerns about the cost and relevance of the additional presentation requirements specific to development stage entities.

Many development stage entities with multiple products under development do not intend to ever manufacture a single product, but rather, may periodically sell...