FASB issued a proposal Wednesday that is designed to clarify when a not-for-profit entity that is a general partner should consolidate a for-profit limited partnership or similar entity.
The Proposed Accounting Standards Update would provide guidance for not-for-profits to follow once the amendments in Accounting Standards Update (ASU) No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, take effect.
Comments will be accepted until Oct. 3 at FASB’s website.
—Ken Tysiac (firstname.lastname@example.org) is a JofA editorial director.