Using Q&As and examples, KPMG provides interpretive guidance on consolidation-related accounting issues in applying ASC 810.
- Companies that present consolidated financial statements
- Companies with interests in variable and/or voting interest entities
This March 2021 edition incorporates updated guidance on:
- The interaction between silos, specified assets and VIE characteristics
- Recent SEC staff views on buy/sell arrangements, de facto agency relationships and shared power
- Hypothetical liquidation at book value (‘HLBV’)
- Common control transactions
- Equity-linked instruments
- Parent control of cash vs share settlement
- 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