8.1 Introduction
The effect of interests held by related
parties requires careful consideration
when applying the VIE consolidation requirements since
such interests may be used to achieve a desired
consolidation conclusion for VIEs. The VIE model
includes specific considerations regarding related
parties, including identification of de facto agents
(additional entities that are considered related
parties in a VIE consolidation analysis) and how
interests held by the reporting entity’s related parties
affect the consolidation analysis. The VIE model
further distinguishes between the treatment of
interests held by related parties under common control,
related parties that are not under common control,
and de facto agents.
Related-party considerations are pervasive in the consolidation analysis, and
they are applied differently in each of its steps. Accordingly, related-party
implications are discussed throughout this Roadmap. In this chapter, the
identification of related parties and de facto agents is addressed in Section 8.2, and a high-level
summary of how related parties should be considered in each step of the
consolidation analysis is presented in Section 8.3.