23 July 2014
Financial Reporting Developments - Consolidated and other financial statements: Noncontrolling interests, combined financial statements, parent company financial statements and consolidating financial statements
We have updated our Financial reporting developments publication on consolidated and other financial statements to clarify and enhance our interpretative guidance. Refer to Appendix C of the publication for a detailed list of these updates.
10 April 2014
Technical Line - Private companies in common control leasing arrangements may be eligible for relief from VIE model
Our Technical Line discusses new guidance from the FASB that provides an exemption for private companies from evaluating lessors in common control leasing arrangements for consolidation under the variable interest entities (VIE) guidance, if they meet certain criteria. Private companies that elect the alternative still need to apply other consolidation guidance and other US GAAP (e.g., lease accounting) to these arrangements and make certain disclosures.
15 October 2013
Financial Reporting Developments - Equity method investments
We have issued our Financial reporting developments publication on equity method investments to clarify and enhance our guidance on the accounting for such investments in accordance with ASC 323.
20 June 2013
Financial Reporting Developments - Consolidation and the Variable Interest Model: Determination of a controlling financial interest
We have reorganized our Financial reporting developments publication on consolidation to help you navigate through the Variable Interest Model. We also have added an overview of the model and some common misconceptions. Our new title, Consolidation and the Variable Interest Model: Determination of a controlling financial interest, reflects these changes. In our new FRD, you’ll also find updates on recent standard-setting activities, clarifications and enhancements to our interpretative guidance and an appendix on applying the Voting Model.
10 June 2013
To the Point - Investment company guidance is final
The FASB issued final guidance requiring an entity to have certain fundamental characteristics and to consider other typical characteristics to qualify as an investment company. The new guidance does not address disclosures about an investment in another investment company or issues related to the applicability of investment company accounting for real estate entities and the measurement of real estate investments. Our To the Point publication tells you what you need to know about the guidance.
6 September 2012
To the Point - Redefining investment company accounting – again
The FASB has made significant changes to its investment company proposal in redeliberations. Our To the Point publication tells you what you need to know about how the proposal has changed.
10 May 2012
Practical matters for the c-suite - Would the redefinition of investment companies affect you?
Our new edition of Practical matters for the c-suite complements our Technical Line and To the Point publications on the FASB’s exposure draft on investment companies and explores in more detail how the proposal would affect an organization’s finance, tax and business processes. The Practical matters for the c-suite series is produced by our Financial Accounting Advisory Services (FAAS) group and is intended to help companies assess the potential effects of accounting proposals on their organizations.
28 February 2012
Practical matters for the c-suite - To consolidate or not to consolidate - that is the question
The latest edition of our FAAS thought leadership series, Practical matters for the c-suite, To consolidate or not to consolidate - that is the question, is aimed at c-suite and board-level contacts at both Channel 1 and Channel 2 clients to help them understand the FASB’s exposure draft on consolidation accounting.
15 February 2012
Comment Letter - Consolidation: Principal vs. agent analysis
Our comment letter supports for the Board’s efforts to more closely align the guidance in US GAAP with IFRS and we believe the proposed principal-agent guidance would alleviate many concerns investors in the asset management industry had with FASB Statement No. 167. Given that the proposal would substantially reduce the differences between the two consolidation models in US GAAP, we also encourage the Board to consider moving toward a single model.
15 February 2012
Comment Letter - Investment companies
Our comment letter supports the objective of amending the investment company definition to clarify whether an entity is within the scope of Topic 946. However, we believe more outreach with preparers and users is critical to determine whether the proposed changes are appropriate and respond to user needs.
15 February 2012
Comment Letter - Proposed ASU on investment properties
Our comment letter opposes creating specialized accounting for investment property entities and suggests that existing diversity in practice among real estate entities would be better addressed by refining the definition of and accounting by an investment company. We believe that a single set of criteria for investment entities that measure their investments at fair value with all changes in fair value recognized in net income would be preferable.
8 December 2011
Technical Line - Consolidation and investment company accounting could change
Our Technical Line discusses two recent FASB proposals that together could be especially important for asset managers. The first proposal would amend existing consolidation guidance and would affect all reporting entities. The second proposal would redefine an investment company and how it accounts for investments.
4 November 2011
To the Point - Consolidation models may move closer together
The FASB issued an exposure draft that would affect how all reporting entities evaluate whether they should consolidate another entity. For VIEs and voting partnerships, a reporting entity’s decision maker would evaluate three qualitative factors to determine whether it is using its power as a principal or an agent. Principals would be required to consolidate. The proposal also would align the consideration of participating rights in the Voting Model with the Variable Interest Model.
3 November 2011
Master limited partnership accounting and reporting guide
Our Master limited partnership accounting and reporting guide covers a variety of common accounting and reporting considerations associated with the formation and ongoing operations of an MLP.
21 October 2011
To the Point - Redefining investment companies and how they account for investments
The FASB issued an exposure draft that redefines an investment company and how it accounts for investments. The proposed definition may appear similar to current US GAAP, but there are some important differences. Some of the proposed changes to the definition and accounting could result in significant changes in practice for certain entities. Our To the Point publication summarizes what you need to know about the proposal.
20 October 2011
Technical Line - A quick guide to understanding the Variable Interest Model and eight common misconceptions
Two years after the FASB revised its complex Variable Interest Model, we continue to see several common misconceptions. By describing the model and highlighting common misconceptions, we hope to help you navigate through the complexity. Our Technical Line is adapted from our Financial reporting developments publication, Consolidation of variable interest entities.
13 May 2011
To the Point - Key differences between IASB's new consolidation guidance and US GAAP
The IASB issued new consolidation accounting guidance establishing a single consolidation model for all entities. While consolidation accounting was once a joint project, the FASB will not issue consolidation guidance similar to the IASB’s guidance at this time. Our To the Point discusses key differences between the models.
3 November 2010
Comment Letter - IASB Staff Draft on consolidated financial statements
Our comment letter supports the objective of developing a single consolidation principle, based on control, applicable to all entities. For successful implementation of the principle, we agree there should be a clear definition of control which incorporates the related concept of power. Specifically, we agree with and support a control principle as articulated in the Staff Draft. However, while we agree with the control principle articulated in the Staff Draft, we believe that the application guidance in the Staff Draft is internally inconsistent with this control principle. In particular, we believe the application guidance for potential voting rights and de facto control is inappropriate.
13 October 2010
Hot Topic - FASB to reconsider convergence with IASB consolidation guidance
Our Hot Topic summarizes the key provisions of the IASB’s staff draft on consolidation and highlights potential differences between the staff draft and current US GAAP.
26 February 2010
Hot Topic - FASB Issues ASU 2010-10 to defer Statement 167 for certain investment funds
The ASU addresses concerns with the application of Statement 167’s consolidation guidance by reporting enterprises in the asset management industry. ASU 2010-10 defers the effective date of the consolidation guidance of Statement 167 for certain investment funds. Our Hot Topic provides additional detail about the final ASU.
29 January 2010
Hot Topic - FASB approves deferral of Statement 167 for certain investment funds
Our Hot Topic provides a brief description of the more significant issues addressed at the 27 January 2010 meeting. At this meeting, FASB members discussed several constituent issues regarding the proposed ASU to amend the effective date of FASB Statement 167 for certain entities.
8 January 2010
Hot Topic - FASB issues ASU on accounting for decreases in ownership of a subsidiary
Our Hot Topic provides a summary of the FASB proposal that addresses implementation issues associated with the provisions of Statement 160 relating to the accounting for decreases in the ownership a subsidiary.
4 December 2009
Hot Topic - FASB issues proposed ASU to defer Statement 167 for certain investment funds and amend other provisions
Our Hot Topic summarizes the FASB's recently issued proposal that addresses concerns with the application of Statement 167 in the asset management industry by proposing to defer the effective date of Statement 167 for certain investment funds. As currently written, Statement 167 may result in asset managers consolidating many hedge funds, private equity funds and other investment funds that they manage.
1 December 2009
FASB Statement No. 167: Internal control considerations
Our publication provides internal control considerations as management considers the implications of the adoption of Statement 167 on its internal control over financial reporting.
11 November 2009
Hot Topic - FASB proposes to defer Statement 167 for asset management funds
The FASB voted to expose for comment an amendment that would defer the application of Statement 167 for a limited number of entities (principally mutual funds, private equity funds and hedge funds) until the completion of the joint FASB/IASB project on consolidation accounting. The FASB intends for the deferral to apply only in instances in which certain conditions are met, as discussed in more detail in our Hot Topic.
25 September 2009
Comment Letter - Proposed ASU, "Accounting and Reporting for Decreases in Ownership of a Subsidiary-a Scope Clarification"
This comment letter expresses our views on the FASB's proposal on consolidation scope.
2 September 2009
Hot Topic - FASB issues proposal on consolidation scope
Our Hot Topic summarizes the FASB's proposal on implementation issues associated with the provisions of Statement 160 related the accounting for decreases in the ownership of a subsidiary.
31 July 2009
Technical Line - Amendments to FIN 46(R)
Our Technical Line summarizes the amendments to FIN 46(R) related to the consolidation of variable interest entities (VIEs).
12 June 2009
Hot Topic - FASB issues Statement 167 amending FIN 46(R)
Our Hot Topic summarizes FASB Statement 167 to address the effects of eliminating the qualifying special-purpose entity (QSPE) concept from FASB Statement No. 140.
11 February 2009
Hot Topic - IASB issues exposure draft on consolidated financial statements
Our Hot Topic summarizes the IASB's proposal on consolidation. The main objectives of the proposal are to improve the definition of control and related application guidance so that a control-based model can be applied to all entities and to enhance the disclosure requirements for consolidated and unconsolidated entities.
6 January 2009
Comment Letter - Proposed Accounting Standards Update, "Amendments to Statement 167 for Certain Investment Funds"
This comment letter provides our views on the FASB's proposal to defer FAS 167 for certain entities.
12 December 2008
Hot Topic - EITF 08-6-Equity method investment accounting considerations
Our Hot Topic discusses the provisions of EITF 08-6. EITF 08-6 was issued to address questions regarding the application of the equity method subsequent to the issuance of FAS 141R and FAS 160.
30 October 2008
Comment Letter - Proposed Amendment to FIN 46(R) - Consolidation of variable interest entities
This comment letter provides our views on the FASB's proposed amendment to FIN 46(R) on consolidation of variable interest entities.
17 September 2008
Hot Topic - Summary of proposed amendment to FIN 46( R)
Our Hot Topic summarizes the FASB's proposal to amend Statement FIN 46(R). The proposal responds to concerns over the transparency of entities' involvement with variable interest entities and the overly complex nature of the VIE model.
15 May 2008
Hot Topic - Potential Amendment to FIN 46 ( R)
Our Hot Topic focuses on the FASB's discussions with regard to amending FIN 46(R) on variable interest entities.