Wiley GAAP 2018, 16th Edition

52ASC 810 Consolidations

1. Perspective and Issues
   1. Technical Alerts
      1. Guidance
      2. Effective Dates
      3. Transition
   2. Subtopics
   3. Scope and Scope Exceptions
      1. Applying the Scope Guidance
      2. General Scope Exceptions
      3. Variable Interest Entities Within Scope
      4. Variable Interest Entities Scope Exceptions
      5. Alternative Approach for Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity
      6. ASC 810–30, Research and Development Arrangements
   4. Overview
2. Definitions of Terms
3. Consolidation Models—Introduction and Background
4. The VIE Model
   1. Does a VIE Scope Exception Apply?
   2. Does the Reporting Entity Have a Variable Interest in the Entity?
   3. Is the Reporting Entity a VIE?
      1. Analyzing an entity’s design
      2. Example of expected variability of cash flows
      3. Initial determination of VIE status
   4. Is the Reporting Entity the Primary Beneficiary?
      1. How to determine if an interest holder is the primary beneficiary
      2. Related-party considerations in determining the primary beneficiary
      3. Related-party tie breaker
      4. Sufficiency of equity investment at risk
      5. Example of application of ASC 810 to related-party leases
   5. Analysis under ASC 810
      1. Other lease terms and provisions
      2. Variable interests in “silos”
   6. Measurement
      1. Initial measurement with common control
      2. Initial measurement absent common control
      3. Example of consolidation of a VIE—consolidation worksheet and journal entries
      4. Example of an implicit variable interest
      5. Example: Arm’s-length leases—computing expected losses and expected residual returns