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Consolidation — FASB discusses scope exception for money market funds

Published on: 24 Oct 2013

The FASB met today to discuss whether it should provide a scope exception from the consolidation requirements in ASC 810, Consolidation, for a decision maker’s interest in a money market fund. The Board noted that the amendments in its November 2011 proposed ASU1 would rescind the indefinite deferral of the consolidation requirements in ASU 2009-172 for money market funds. Accordingly, under the proposal, such entities would need to be evaluated under the general consolidation requirements.

The Board tentatively decided that it would provide a scope exception for an entity’s interest in a fund that is required to operate and does operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. However, an entity would be required to provide disclosures about any support provided to money market funds that qualify for the scope exception.

For additional information about the project’s history and Board decisions reached to date, see the FASB’s project page.


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

2 FASB Accounting Standards Update No. 2009-17, Improvements to Financial Reporting by Enterprises Involved With Variable Interest Entities.

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