The objective of the amended guidance on consolidation of VIEs (Topic 810) is to improve financial reporting by enterprises involved with VIEs and to provide more relevant and reliable information to users of financial statements. The amended guidance changes how a company determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated. The determination of whether a company is required to consolidate an entity is based on, among other things, an entity’s purpose and design and a company’s ability to direct the activities of the entity that most significantly impact the entity’s economic performance. The scope of the amended guidance has been expanded to include entities previously considered QSPEs as the concept of these entities was eliminated in the amended guidance for transfers of financial assets (see “Transfers of Financial Assets” Topic 860 section of this Web resource). 

The amended consolidation guidance is effective as of the beginning of a reporting entity’s first annual reporting period that begins after November 15, 2009, for interim periods within that first annual reporting period, and for interim and annual reporting periods thereafter. The FASB deferred the effective date of the amended consolidation guidance for a reporting entity’s interest in an entity (1) that has all the attributes of an investment company or (2) for which it is industry practice to apply measurement principles for financial reporting purposes that are consistent with those followed by investment companies. Readers should refer to ASC Topic 810 for further details.

Relevant FASB guidance and non-authoritative CAQ and CAQ member firm publications are available at the respective tabs.

The CAQ and member firm publications referenced within this Web resource are not authoritative and users are urged to refer directly to applicable authoritative pronouncements for the text of the technical literature. These firm publications do not purport to be applicable or sufficient to the circumstances of any work performed by members. They do not set any standards, nor have they been approved by any regulatory body or the FASB. They are not intended to be a substitute for professional judgment applied by practitioners. The information upon which these firm publications are based may change from time to time. As a result, the information, commentary or guidance contained herein may not be current or accurate and the CAQ is under no obligation to update such information. Readers are therefore urged to refer to current authoritative or source material.

Consolidation (authoritative)

Amendments for Certain Investment Funds (non-authoritative)

Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities (non-authoritative)

Amendments to FASB Interpretation No. 46(R) (non-authoritative)

Guide to Accounting for Variable Interest Entities – 2010 Edition, PricewaterhouseCoopers

BDO Knows: Variable Interest Entities, BDO

Variable Interest Entity Analysis – ASC 810 – Consolidation, as amended by ASU 2009-17, Grant Thornton

SEC Staff Discusses Structured Transactions and VIEs, CAQ Alert #2010-37

Back on-balance sheet: Observations from the adoption of FAS 167, Deloitte

Effect of ASUs 2009-16 and 2009-17 on Presentation of Trade Receivable Financing Arrangements, Deloitte

New Standard on Accounting for Variable Interest Entities – Section 404 Considerations, CAQ Alert #2010-21

New Standard on Accounting for Variable Interest Entities – Transition Questions for SEC Registrants, CAQ Alert #2010-20

The Effects of the Revised Variable Interest Model on Lot Option Contracts, Ernst & Young

Consolidation of Variable Interest Entities – A Roadmap to Applying the Variable Interest Entities Consolidation Model, Deloitte

FASB Defers Statement 167 for Interests in Certain Investment Funds and Makes a Clarification, Grant Thornton

Deferral of Statement No. 167 for Certain Investment Funds, McGladrey & Pullen

FASB Finalizes Deferral of FAS 167 for Certain Investment Funds and Other FAS 167 Amendments – A Summary of ASU 2010-10, PricewaterhouseCoopers

Securitization Accounting: The Ins and Outs (and some Do’s and Don’ts) of FAS 166, 167, and Counting, Deloitte

FASB Votes to Finalize Deferral of Statement 167 for Certain Investment Funds, Deloitte

FASB Approves the Deferral of Statement 167 for Certain Investment Funds, Ernst & Young

Transfer and Consolidation Issues: An Overview of FASB Statements 166 and 167, Crowe Horwath

Statement 167: Insights for the Tourism, Hospitality & Leisure Industry, Deloitte

FASB Statement No. 167, Internal Control Considerations, Ernst & Young

Implementation of the New Variable Interest Entity Standard, Grant Thornton

Implementing FASB Statements No. 166, Accounting for Transfers of Financial Assets, and No. 167, Amendments to FASB Interpretation No. 46(R), KPMG

FASB Exercises Its Kick-Out Right Board Votes to Defer Statement 167 for Interests in Certain Entities, Deloitte

FASB Statement No. 167, Amendments to FASB Interpretation No. 46(R) Appendix C: Frequently Asked Questions on Statement 167, Ernst & Young

Consolidation of Variable Interest Entities, BDO

Oh Thank Heaven It’s 167 . . . Implementation Guidance!, Deloitte

Statement 167 Compliance Checklist, Deloitte

FAS 167 Action Plan, PricewaterhouseCoopers

FIN 46 (R) Revised Again, Deloitte

FASB Statement No. 167, Amendments to FASB Interpretation No. 46(R), Ernst & Young               

FASB Amends the Consolidation Guidance Related to Variable Interest Entities, Deloitte

FASB issues Statement 167, Amendments to FIN 46(R), Ernst & Young

Amendments to FIN 46(R) Issued, McGladrey & Pullen

FAS 167 – New Consolidation Guidance for Variable Interest Entities, PricewaterhouseCoopers

October 2009 Reporting Update Audio, October 2009 Reporting Update Slides, BDO 

Amendments to the Accounting for Securitizations and Special Purpose Entities, FASB