Consolidation Rules Clarified for Related Parties Under Common Control
Thoughtware Article
Published: Nov 01, 2016
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Executive Summary
The Financial Accounting Standards Board recently issued new guidance updating the consolidation analysis for single decision makers with indirect interests held through related parties under common control. In common control situations, a single decision maker would focus on its economics when determining whether it is the primary beneficiary of a variable interest entity (VIE) before potentially evaluating which party is most closely associated with the VIE.
