Handbooks | September 2021

 

Insight

Handbook: Consolidation

Latest edition: Our in-depth consolidation guide, covering variable interest entities, voting interest entities and NCI.

Angie Storm

Angie Storm

Partner, Dept. of Professional Practice, KPMG US

+1 212-909-5488

Matt Drucker

Matt Drucker

Partner, Audit, KPMG US

+1 212-872-3584

Megan Hearn

Megan Hearn

Senior Manager, Audit , KPMG US

+1 212-872-6783


Using Q&As and examples, KPMG provides interpretive guidance on consolidation-related accounting issues in applying ASC 810.

Applicability

  • Companies that present consolidated financial statements
  • Companies with interests in variable and/or voting interest entities

Relevant dates

  • Effective immediately

Key impacts

This September 2021 edition incorporates updated guidance on:

  • Rabbi trusts consolidation considerations
  • Embedded derivatives
  • Insignificant ‘other interest’ held by a decision-maker
  • NCI measurement in a common control transaction
  • Considerations for consolidation of not-for-profits by for-profit sponsors 

Report contents

  • Scope
  • What is a variable interest?
  • What is a variable interest entity?
  • Who consolidates a voting interest entity?
  • Who consolidates a variable interest entity?
  • Consolidation and deconsolidation procedures
  • Presentation and disclosure
  • Not-for-profit entities, entities controlled by contract, combined and parent-only financial statements
  • Expected losses and expected residual returns

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