March 31, 2016 — At its meeting yesterday, the FASB discussed its project to clarify when a not-for-profit entity (NFP) that is a general partner should consolidate a for-profit limited partnership or similar entity. The project was added to the Board’s agenda at its December 17, 2015, meeting as a result of implementation questions from stakeholders regarding the application of the amendments to the consolidation guidance in ASC 810-101 made by ASU 2015-02,2 which eliminated ASC 810-20.3 Under ASC 958-810-15-4(b)4 before ASU 2015-02’s amendments, an NFP that is a general partner of a for-profit limited partnership would, in accordance with ASC 810-20, be presumed to control the limited partnership unless the limited partners are able to exercise substantive kick-out or participating rights.
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