FASB proposes amending consolidation guidance

By Ken Tysiac

FASB issued a proposal Thursday that would amend consolidation guidance in an effort to provide more useful information to investors.

Current GAAP requires a single decision-maker, in circumstances involving common control, to attribute interests held by certain of its related parties to itself. This may require the single decision-maker to consolidate a variable-interest entity (VIE) even if it has little or no direct economic interests in the VIE.

Under the proposal issued Thursday, a single decision-maker would focus on the economics to which it is exposed when determining whether it is the primary beneficiary of a VIE before potentially evaluating which party is most closely associated with the VIE.

Comments on the proposal can be made through July 25 at FASB’s website.

Ken Tysiac (ktysiac@aicpa.org) is a JofA editorial director.

SPONSORED REPORT

How to make the most of a negotiation

Negotiators are made, not born. In this sponsored report, we cover strategies and tactics to help you head into 2017 ready to take on business deals, salary discussions and more.

VIDEO

Will the Affordable Care Act be repealed?

The results of the 2016 presidential election are likely to have a big impact on federal tax policy in the coming years. Eddie Adkins, CPA, a partner in the Washington National Tax Office at Grant Thornton, discusses what parts of the ACA might survive the repeal of most of the law.

QUIZ

News quiz: Scam email plagues tax professionals—again

Even as the IRS reported on success in reducing tax return identity theft in the 2016 season, the Service also warned tax professionals about yet another email phishing scam. See how much you know about recent news with this short quiz.