At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the McGladrey Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Consolidation: Interests held through related parties under common control

Upon the effective date of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2015-02,Consolidation (Topic 810): Amendments to the Consolidation Analysis, a single decision maker of a variable interest entity (VIE) is required to consider indirect economic interests in the entity held through related parties on a proportionate basis when determining whether it is the primary beneficiary of that VIE, unless the single decision maker and its related parties are under common control. If a single decision maker and its related parties are under common control, the single decision maker is required to consider indirect interests in the entity held through those related parties to be the equivalent of direct interests in their entirety. This may result in the single decision maker consolidating a VIE even if it has little to no direct economic interests in the VIE. To address this issue, the FASB recently issued a proposed ASU, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control.

Click Here to Read More

Source: RSM US LLP
Used with permission as a member of the McGladrey Alliance
http://rsmus.com/what-we-do/services/assurance/financial-reporting-resource-center/fasb-issues-final-standard-on-credit-losses.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.