Development Stage Interprise

Question 1

Development Stage Enterprise GAAP - what is the definition of a development stage enterprise?

Answer 1

A Development Stage Enterprise is one that:

1- main operations have not yet started.
2- main operations have not yet generated a significant amount of revenue.

Question 2

Development Stage Enterprise GAAP - under this type of enterprise what is the proper treatment of startup and organizational costs?

Answer 2

All startup and organizational costs must be expensed immediately under GAAP.