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A Roadmap to Consolidation — Identifying a Controlling Financial Interest

A Roadmap to Consolidation — Identifying a Controlling Financial Interest

This Roadmap reflects changes in the consolidation landscape introduced by the FASB’s issuance of ASU 2015-02 in February 2015.

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  • US GAAP
This publication is a comprehensive guide to navigating the frequently complex consolidation accounting models. The 2019 edition reflects amendments made by ASU 2018-17 related to the private-company alternative and the alignment of certain assessments performed in the consolidation analysis. While the amendments do not represent wholesale changes such as those made by ASU 2015-02, they may significantly affect private companies that wish to apply the private-company alternative as well as certain decision makers. Appendix H summarizes the changes made to this Roadmap since the 2018 edition.
The Roadmap breaks down the requirements in ASC 810 and reconstructs them in a logical narrative, making them easier to understand and apply. While the discussion focuses primarily on the complexities of identifying whether a legal entity is a variable interest entity (VIE) and whether a reporting entity should consolidate the VIE, it also addresses the voting interest entity model and provides a framework for its application.
Several of the Roadmap’s chapters feature a “thumbnail image” that, when clicked, links to a flowchart with each step of the consolidation analysis. If you get lost when performing the analysis, we recommend grounding yourself by going back to the flowchart at the end of the Introduction. (Believe us, it can be easy to lose your way!)