ASC 272 Limited Liability Entities

Accounting Standards Codification (ASC) 272, Limited Liability Entities, contains one subtopic: ASC 272-10, Overall, that contains guidance for limited liability entities organized in the United States that prepare financial statements under U.S. generally accepted accounting principles (GAAP). With regard to financial statement display issues, the Codification requires that the headings of each statement identify the entity as being a limited liability company or alimited liability partnership, similar to the common practice of identifying partnership entities. ASC 272 addresses certain issues pertaining to accounting and reporting by limited liability entities: either a limited liability company or a limited liability partnership. This Topic establishes that, when an entity restructures itself as a limited liability entity, the basis of all assets and liabilities from its predecessor entity are carried forward. ASC 272 sets forth certain disclosures to be made in the financial statements of limited liability companies.