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Overview
Our publication discusses the FASB’s amendments to the guidance for identifying the accounting acquirer in an acquisition achieved primarily through an exchange of equity interests in which the legal acquiree is a variable interest entity (VIE) that meets the definition of a business. The amended guidance more closely aligns the requirements for identifying the accounting acquirer in the acquisition of a VIE with those applicable to acquisitions that involve voting interest entities. The guidance is effective for all entities for fiscal years beginning after 15 December 2026, and interim periods within those fiscal years. It is required to be applied prospectively to acquisitions that occur on or after the effective date. Early adoption is permitted, including in an interim period.