FASB Holds Roundtable on Consolidation
Yesterday, the FASB hosted a public roundtable to discuss the IASB’s staff draft on consolidation. The FASB will consider input received from participants and other stakeholders and determine whether to proceed with an exposure draft to obtain full convergence with IFRSs on voting-interest entities. Participants at the roundtable included users, preparers, and auditors as well as representatives from the FASB, IASB, and SEC.
The FASB discussed the following topics related to the staff draft: (1) de facto control, (2) potential voting rights, (3) principal/agency relationships, (4) consideration of kickout rights, and (5) continuous reassessment.
The IASB noted it will consider the feedback from participants in drafting a final consolidation standard.
