EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. ASC 810-10 provides guidance on general consolidation issues, as well as guidance related to variable interest entities and consolidation of entities controlled by contract. Limited partnerships present a special challenge when evaluating decision making rights. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. The amendments clarify the consolidation guidance for NFPs (ASC 958-810). Deconsolidation provisions of ASC 810-10 Under the provisions of the Exposure Draft, the deconsolidation guidance within ASC 810-10-40-4 through 40-5 would not apply to entities that are in-substance real estate and entities that do not meet the definition of a business. 810-10 Overall. ASC 810 comprises three Subtopics, below is an overview of each Subtopic. ASC 810-10-25-43d states that the “the right of prior approval creates a de facto agency relationship only if that right constrains the other party’s ability to manage the economic risks or realize the economic rewards from its investment in a VIE through the sale, transfer, or … Refer to Appendix A of the publication for a summary of the updates. Entities will need to apply judgment to determine what is considered “substantially all” because the standard does not provide a bright line for making this assessment. guidance in Topic 810, Consolidation, Subtopic 323-10, Investments—Equity Method and Joint Ventures, or other related accounting literature. ASC 810 ). However, the disclosures required by paragraph 808-10-50-1 apply to the entire collaborative arrangement, notwithstanding that a portion of the collaborative arrangement may be conducted in a legal entity. How we see it . Our FRD publication on ASC 606, Revenue from Contracts with Customers, has been updated to (1) expand our discussion of the variable consideration allocation exception and add two illustrations and (2) add discussion of a recent technical correction to the Codification. KPMG reports on a proposed ASU for ASC 810. Add the following Master Glossary terms to Subtopic 810-10 as follows: Financial Statements Are Available to Be Issued Financial statements are considered available to be issued when they are complete in a form and format that complies with GAAP and all approvals necessary for issuance have been obtained, for example, from management, the ASC 810-10-40-4 is explicit with respect to the literature to look to FASB restores NFP general partners’ control presumption January 02, 2017. Companies may pursue mergers and acquisitions for a variety of reasons. FASB proposes to provide a private company alternative and make targeted improvements to the related party guidance for VIEs. For more information about our organization, please visit ey.com. ASC 810, an entity may follow the subsequent accounting guidance for intangible assets acquired in a business combination in ASC 350, Intangibles — Goodwill and Other. The ASC 810 guidance clearly states that these rights have no bearing on the analysis unless they can be exercised by a single party (including its de facto agents and related parties). 2. As a general rule, the general partner controls a limited partnership. Strategic buyers often seek to expand an existing revenue stream, obtain a new revenue stream, or extend control of their supply chain. 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