Tag Archives: ASC 810

Consolidation, Variable Interest Entities, ASC 810

Variable Interest Entities (VIE)

SFAS 167 amended FIN 46(R) in June 2009
FIN 46(R) revised FIN 46 in December 2003
FIN 46 was issued in January 2003 as an interpretation of ARB 51
SFAS 167, June 2009
“Amendments to FASB Interpretation No. 46(R)”

FASB Interpretation 46(R), Revised in December 2003
“Consolidation of Variable Interest Entities – an interpretation of ARB No. 51”

Amendments to FIN 46(R) by SFAS 167 in June 2009

1. Determination of VIE
After SFAS 167
–> FIN46R-5b(1) was amended with new guidance
–> Whether an entity is a VIE may change after SFAS 167

2. Reconsideration of VIE
–> FIN46R-7e was added as an event for reconsideration of VIE

3. Determination of Primary Beneficiary
–> Quantitative approach was deleted
–> “majority” guidance was deleted by amending FIN46R-14

4. Reconsideration of Primary Beneficiary
–> After SFAS 167, reassessment is done on an ongoing basis
–> FIN46R-15, that listed the events triggering reconsideration, was deleted

5. Troubled debt restructuring
–> Before SFAS 167, troubled debt restructuring was not an event
that triggers the reconsideration of VIE or Primary Beneficiary
–> Such exceptions were deleted by amendments to FIN46R-7 and FIN46R-15

6. Additional disclosures
–> Paragraphs 22A – 22E and 23A were added for additional disclosures

 

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Consolidation, Noncontrolling Interests, ASC 810

Noncontrolling Interests (NCI)

SFAS 160 amended ARB 51 in December 2007
ARB 51 was issued in 1959

SFAS 160, December 2007
“Noncontrolling Interests in Consolidated Financial Statements� an amendment of ARB No. 51”

ARB 51, August 1959
“Consolidated Financial Statements”

Effective date of SFAS 160
Fiscal years and interim periods within those fiscal years
–> beginning on or after December 15, 2008
–> earlier adoption is not allowed

Presentation and disclosures
–> are applied to all periods presented

Noncontrolling interests (NCI)
–> presented within equity
–> separately from the parent’s equity

Consolidated net income
–> includes the NCI portion of net income

Consolidated comprehensive income
–> includes the NCI portion of comprehensive income

Before SFAS 160
–> Minority interest cannot have a deficit balance
–> Excess losses attributable to minority interest
–> are charged to the majority interest

After SFAS 160
–> NCI can have a deficit balance
–> All losses attributable to NCI
–> are charged to NCI

 

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Consolidation, ASC 810

Consolidation

SFAS 167 amended FIN 46(R) in June 2009
FIN 46(R) revised FIN 46 in December 2003
FIN 46 was issued in January 2003 as an interpretation of ARB 51

SFAS 160 amended ARB 51 in December 2007
ARB 51 was issued in 1959

QSPE: Qualifying Special Purpose Entities
Before SFAS 167
–> FIN 46(R) did not apply to QSPE
–> FIN 46(R)-pr 4, QSPEs are not consolidated
SFAS 166 deleted the concept of QSPE from SFAS 140 in June 2009
SFAS 167 amended FIN 46(R) to delete the exception for QSPE in June 2009

ARB 51, August 1959
“Consolidated Financial Statements”

SFAS 140, September 2000
“Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities – a replacement of FASB Statement of No. 125”

SFAS 160, December 2007
“Noncontrolling Interests in Consolidated Financial Statements� an amendment of ARB No. 51”

SFAS 166, June 2009
“Accounting for Transfers of Financial Assets – An amendment of FASB Statement No. 140”

SFAS 167, June 2009
“Amendments to FASB Interpretation No. 46(R)”

FASB Interpretation 46(R), Revised in December 2003
“Consolidation of Variable Interest Entities – an interpretation of ARB No. 51”

 

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