Development-Stage Enterprises

Question 1

A development-stage enterprise is one in which either?

Answer 1

Principal operations have not yet commenced or principal operations have generated an insignificant amount of revenue

Question 2

What type of financial statements must be issued by a development-stage enterprise?

Answer 2

Same financial statements as any other enterprise

Question 3

The additional required disclosures for development-stage enterprises are?

Answer 3

Describe cumulative net losses in the balance sheet, present a cumulative amount from the company’s inception in the income statement, cumulative amounts for cash flows, and statement of stockholder’s equity