Deloitte
Accounting Research Tool
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On the Radar

On the Radar

On the Radar

Under U.S. GAAP, there are two primary consolidation models: (1) the voting interest entity model and (2) the VIE model. Both require the reporting entity to identify whether it has a “controlling financial interest” in a legal entity and must therefore consolidate the legal entity. This requirement is not limited to legal entities that are VIEs — a reporting entity must consolidate any legal entity in which it has a controlling financial interest.