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This Statement of Position (SOP) provides guidance on the financial reporting of start-up costs. It requires costs of start-up activities to be expensed as incurred. The SOP broadly defines start-up activities and provides examples to help entities determine what costs are and are not within the scope of this SOP. This SOP applies to all nongovernmental entities and is effective for financial statements for fiscal years beginning after December 15, 1997. Earlier application is encouraged in fiscal years for which financial statements previously have not been issued.
Start-up costs -- Accounting -- Standards -- United States
Accounting | Taxation
American Institute of Certified Public Accountants. Accounting Standards Executive Committee, "Proposed statement of position : Reporting on the costs of start-up activities;Reporting on the costs of start-up activities" (1997). Statements of Position. 629.