Wiley GAAP: Financial Statement Disclosure Manual

12ASC 272 LIMITED LIABILITY ENTITIES

1. Authoritative Literature
   1. Subtopic
   2. Scope
2. Disclosure and Presentation Requirements
   1. Presentation
      1. Complete Set of Financial Statements
      2. Headings of Financial Statements
      3. Members’ Equity
      4. Comparative Statements
   2. Disclosures
3. Disclosure Examples
   1. Example 12.1: Member's Equity
   2. Example 12.2: Income Taxes

AUTHORITATIVE LITERATURE

Subtopic

ASC 272, Limited Liability Entities, contains one Subtopic:

• ASC 272‐10, Overall, which contains guidance for limited liability entities organized in the United States that prepare financial statements under U.S. GAAP.

Scope

ASC 272 applies to all entities structured as limited liability entities. (ASC 272‐10‐15‐2)

DISCLOSURE AND PRESENTATION REQUIREMENTS

Presentation

Complete Set of Financial Statements A complete set of financial statements includes:

• A statement of financial position.
• A statement of operations.
• A statement of cash flows.
• Changes in members’ equity:
  • As a separate statement.
  • Combined with the statement of operations.
  • In the notes.
• Notes to the financial statements.

  (ASC 274‐10‐45‐1)

Headings of Financial Statements The headings of each statement must identify the entity as being a limited liability entity. (ASC 272‐10‐45‐2) This alerts the user to certain anomalies, such as (most commonly) an absence of income tax expense and a related liability, and the use of somewhat distinctive captions in the equity section of the statement of financial position.

Members’ Equity ...