Companies may pursue mergers and acquisitions for a variety of reasons. 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. 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. How we see it . The amendments clarify the consolidation guidance for NFPs (ASC 958-810). ASC 810-10-40-4 is explicit with respect to the literature to look to KPMG reports on a proposed ASU for ASC 810. As a general rule, the general partner controls a limited partnership. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Refer to Appendix A of the publication for a summary of the updates. guidance in Topic 810, Consolidation, Subtopic 323-10, Investments—Equity Method and Joint Ventures, or other related accounting literature. An entity should consider its accounting policies for applying other accounting guidance 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 comprises three Subtopics, below is an overview of each Subtopic. 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. 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 … For more information about our organization, please visit ey.com. 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. 2. FASB restores NFP general partners’ control presumption January 02, 2017. 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. 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 Financial buyers often aim to extract value from the target, … FASB proposes to provide a private company alternative and make targeted improvements to the related party guidance for VIEs. 810-10 Overall. 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. 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