Apr 24, 2013
From the Financial Reporting Network
This Defining Issues reports that the FASB recently issued an Accounting Standards Update (ASU) that requires an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent, as defined in the ASU. The ASU’s objective is to eliminate diverse practices by providing guidance about when and how to apply the model. The guidance applies to all entities except for investment companies regulated under the Investment Company Act of 1940.