Consolidation — FASB Begins Redeliberating the Proposed Model

Published on: 30 Aug 2012

At its meeting yesterday, the FASB began redeliberating its November 2011 proposed Accounting Standards Update Principal Versus Agent Analysis. The Board decided to retain the proposal’s guidance under which entities would evaluate participating rights the same way under all of the various consolidation models in FASB Accounting Standards Codification Topic 810, Consolidation.

In addition, the Board agreed that the purpose and design of an entity should not be a specific factor for entities to consider in the principal versus agent analysis but that entities should consider purpose and design in their analysis under all of the consolidation models.

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