KPMG Comments on FASB Proposal, Interests Held through Related Parties That Are under Common Control
Aug 01, 2016
From the Financial Reporting View
KPMG LLP recently commented on the proposed FASB ASU, Interests Held through Related Parties That Are under Common Control. The proposal would amend the consolidation guidance by changing how a reporting entity that is a single decision maker of a variable interest entity (VIE) considers indirect interests in the VIE held through related parties that are under common control when determining whether it is the primary beneficiary.
KPMG believes that the proposal would address stakeholders’ concerns about situations that involve related parties under common control in which a single decision maker would be required to consolidate a variable interest entity, even if it has little or no direct economic interest.