Preface
We are pleased to present the 2025 edition of Consolidation —
Identifying a Controlling Financial Interest, a comprehensive guide to
navigating the frequently complex consolidation accounting models. This Roadmap
breaks down the requirements in ASC 8101 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.
At the beginning of several of the Roadmap’s chapters, we have
included a small flowchart that, when clicked, opens a larger version that contains
links to 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!)
We encourage you to use this Roadmap as a guide throughout your
application of the consolidation guidance. However, the Roadmap is not a substitute
for consulting with Deloitte professionals on complex accounting questions and
transactions. Appendix
J summarizes key changes made to the Roadmap since publication of the
2024 edition.
Be sure to check out On the Radar (also available
as a stand-alone publication), which
briefly summarizes emerging issues and trends related to the
accounting and financial reporting topics addressed in the
Roadmap.
We hope that you find this publication a valuable resource, and we
welcome your suggestions for improvements as new chapters in the consolidation story
unfold.
Footnotes
1
For a list of the titles of standards and other literature
referred to in this publication, see Appendix H. For a list of
abbreviations used in this publication, see Appendix I.