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ASC 272 — Limited Liability Entities

Below is an overview of FASB Accounting Standards Codification Topic 272, Limited Liability Entities, as well as a list of FASB Accounting Standards Updates (ASUs) and proposed ASUs related to this Topic.


This Topic addresses the reporting guidance applicable to limited liability entities organized in the U.S. that prepare financial statements in accordance with U.S. GAAP. ASC 272-10 defines a limited liability entity as follows:


A limited liability company generally has the following characteristics:

  1. It is an unincorporated association of two or more persons.
  2. Its members have limited personal liability for the obligations or debts of the entity.
  3. It is classified as a partnership for federal income tax purposes.

The full text of ASC 272 can be found in the FASB Accounting Standards Codification (link to the FASB's Web site; registration required). Also, the full text of the Codification and Deloitte-authored Q&As related to the Codification are available in the Deloitte Accounting Research Tool (DART) Web site (subscription required).

Content from the FASB Accounting Standards Codification® included at is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116, and is reproduced with permission.

FASB Accounting Standards Updates

    The following ASUs amended the guidance in this Topic:

    Proposed FASB Accounting Standards Updates

      Correction list for hyphenation

      These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.