FASB ASC 956 - Limited Liability Entities


The Financial Accounting Standards Board (FASB) released Accounting Standards Codification 956 (ASC 956) to address those topics related to limited liability entities such as corporations and LLCs. Limited liability entities are characterized by the limited nature of the shareholders in the event that a lawsuit or similar event occurs. Upon this event, the owners are only liable up to the investment in the company and other personal assets are generally not at risk.

Check out more high level explanations of the FASB ASC in our Guide to the Accounting Standards Codification!

For more in depth information on this and other FASB ASC topics, check out the following books.

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