business devoting substantially all of its efforts to establishing itself. Either of the following conditions exist: (1) planned principal operations have not started or (2) there has been no significant revenue although principal operations are underway. Generally Accepted Accounting Principles (GAAP)applicable to established companies apply equally to development stage enterprises. In the balance sheet, cumulative net losses are reported as "deficit accumulated during the development stage." In the income statement, cumulative amounts of revenue and expense from inception of the enterprise are reported. The statement of financial positionshows the cumulative amounts of sources and uses of funds from inception. The financial statements are identified as those of a development stage enterprise and include a description of the development activities. In the first year in which a development stage enterprise is no longer considered such, it must disclose that in prior years it had been.
enterprise devoting substantially all of its efforts to establishing itself. Either of the following conditions exist: (1) planned principal operations have not started or (2) there has been no significant revenue although principal operations are underway. Generally Accepted Accounting Principles (GAAP) applicable to established companies apply equally to development stage enterprises.
