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The Development Stage Entities Topic specifies the guidelines for identifying an entity in the development stage, addresses the applicability of generally accepted accounting principles (GAAP) to development stage entities, and provides guidance on financial reporting requirements for development stage entities, including additional information required to be presented in the basic financial statements of development stage entities. This Topic contains the following Subtopics:
a. Overall
b. Presentation of Financial Statements
c. Balance Sheet
d. Statement of Shareholder Equity
e. Income Statement
f. Statement of Cash Flows
g. Notes to Financial Statements
h. Other Assets and Deferred Costs
i. Revenue Recognition
j. Consolidation.
Identify and explain the two ratios that are used to assess the solvency of a business.
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