Principal versus agent — FASB decides not to require separate analysis

Published on: 12 Dec 2013

At its meeting this week, the FASB discussed its proposed ASU1 on the principal versus agent analysis and tentatively decided to integrate the proposal’s factors for determining whether a reporting entity is a principal or an agent into the evaluation of whether the reporting entity holds a controlling financial interest in the entity. Accordingly, a separate and distinct principal versus agent analysis would not need to be performed.

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1 FASB Proposed Accounting Standards Update, Principal Versus Agent Analysis.

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