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FASB Discusses Nonprofit Partner Consolidation Guidance

During its meeting on March 30th, the Financial Accounting Standards Board (“FASB”) discussed its project on clarifying when a nonprofit general partner should consolidate a for-profit limited partnership or similar entity. Topics covered included outreach performed on potential alternatives, the transition method and whether the FASB should draft a proposed Accounting Standards Update (ASU). As a result of the discussions, the FASB reached the following decisions: The current practice for nonprofit general partners was preserved by reinstating the consolidation guidance that existed in Subtopic 810-20, Consolidation—Control of Partnerships and Similar Entities, and adding it to Subtopic 958-810, Not-for-Profit Entities—Consolidation. Because. Read More.

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