online christian dating sydney - Consolidating joint ventures under gaap
In response to concern about this practice, FASB issued Interpretation no.46 in January 2003 and a revised version in December 2003 to help companies decide whether to consolidate VIEs into their financial statements.
We also discuss the disclosure and supervisory requirements for equity investments.
Due to the differences in the historical backgrounds and stages of economic development among the three regions, it is inevitable and necessary for the regions to maintain their respective characteristics in the accounting standards.
The previous requirements for excluding subsidiaries held for resale from consolidation were much more onerous.
AMONG ENRON’S PROBLEMS WAS ITS USE of variable interest entities, which allowed it to leave significant amounts of debt off its balance sheet.
A VIE MUST BE CONSOLIDATED INTO THE FINANCIAL statements of the primary beneficiary company when it does not have enough equity at risk or its equity investors lack any of three characteristics of controlling financial interest.