Development Stage Deficit

Question 1

How are deficit accumulated during the development stage of a company reported?

Answer 1

As part of stockholder equity (SE)

Rule: develop. Stage enterprise FS s/b
In accordance with GAAP and make additional disclosure such as cumulative net losses, cumulative deficit ( as part of equity), cumulative sales & expenses ( part of I/S), cumulative statement of cash flows and supplementary “shareholders equity.”