5/26/2020 · The guidance on applying the Variable Interest Model or the Voting Model is complex, and knowing when and how to apply each model can be challenging. Consolidation evaluations always begin with the Variable Interest Model, which applies to all entities , with certain limited exceptions. The Variable Interest Model, 8/24/2020 · A variable interest entity (VIE) refers to a legal business structure in which an investor has a controlling interest despite not having a majority of voting rights. Characteristics include a…
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5/8/2017 · Variable interest entity. A variable interest entity (VIE) is a legal entity in which an investor holds a controlling interest, despite not having a majority of its share ownership. A VIE has the following characteristics: The entity’s equity is not sufficient to support its operations.
12/15/2020 · available free of charge on EY AccountingLink. Pronouncements and resources • Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting … Guidance for Variable Interest Entities, What is a variable interest ? What is a variable interest entity ? Who consolidates a voting interest entity ? Who consolidates a variable interest entity ? Consolidation and deconsolidation procedures; Presentation and disclosure; Not-for-profit entities , entities controlled by contract, combined and parent-only financial statements, The variable interest entity (or VIE) model is the starting place for any company thinking through consolidation. It’s a complex model and a frequent area of confusion.
Craig has worked closely with clients across multiple jurisdictions to address companies’ complex accounting and reporting matters such as investment impairment analyses, purchase accounting, variable interest entity and consolidation assessments, investment company considerations for insurance-linked securities structures, system analysis and implementation, and reinsurance.
In addition, the FASB amended the variable interest entity guidance to require an entity to consider a decision maker’s indirect interests held through related parties under common control on a proportionate basis when determining whether decision-making fees are variable interests. For entities other than private companies, the guidance is effective for fiscal years beginning after 15 December 2019, and.
11/4/2014 · Variable interest entities can be complex organizations, so a deeper discussion about them is beyond the scope of this article. In addition, specifics about the consolidation process are not relevant to your understanding of what a variable interest entity is and how it should be accounted for, so we’ll leave that discussion alone for now.
