FASB: New consolidation guidance

FASB: New consolidation guidance

The FASB last week issued new consolidation guidance.

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The guidance changes the way reporting enterprises evaluate whether:

  • They must consolidate limited partnerships and similar entities
  • Fees paid to a decision maker or service provider are variable interests in a variable interest entity (VIE)
  • Variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE

The new guidance is effective for public business entities in fiscal years beginning after December 15, 2015. It is effective one year later for all other entities. Early adoption is allowed, including early adoption in an interim period.


Read a February 2015 report [PDF 1.2 MB] prepared by KPMG LLP: Defining Issues: FASB Issues New Consolidation Guidance

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