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FASB amends consolidation guidance for not-for-profit entities

  • FASB document Image

Jan 12, 2017

The FASB has issued ASU 2017-02, “Clarifying When a Not-for-Profit Entity That Is a General Partner or a Limited Partner Should Consolidate a For-Profit Limited Partnership or Similar Entity,” which amends the consolidation guidance for not-for-profit entities in ASC 958-810.

The amendments in the ASU:

  • “[R]etain the consolidation guidance that was in [ASC] 810-20 for NFPs by including it within Subtopic 958-810.”
  • Add guidance on when an “NFP limited partner should consolidate a for-profit limited partnership.”
  • Add “kick-out rights,” “participating rights,” and “protective rights” to the ASC 958-810 glossary.
  • Clarify the application of fair value elections.

The ASU is effective for NFPs for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. For more information, see Deloitte's related Heads Up newsletter as well as the ASU on the FASB’s Web site.

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