FASB Issues Guidance On Liquidation Accounting
The FASB has issued ASU 2013-07, Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting.
Currently, there is minimal guidance in U.S. generally accepted
accounting principles (GAAP) that addresses when it is appropriate, or
how to apply, the liquidation basis of accounting.
The amendments in this ASU clarify when an entity should apply the
liquidation basis of accounting. In addition, the guidance provides
principles for the recognition and measurement of assets and liabilities
and requirements for financial statements prepared using the
liquidation basis of accounting.