Consolidation Guidance for Entities under Common Control Amended
New guidance has been issued for businesses that evaluate the consolidation of a variable interest entity under common control. The amendments under Accounting Standards Update (“ASU”) No. 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control, change the assessment of whether a reporting entity is the variable interest entity’s primary beneficiary. ASU 2015-02 required that entities that were the single decision making treat related parties that were under common control differently that other related parties. The new guidance will now require a single decision maker to consider interests held through related parties under common control. Read More.