FASB defers implementation of Interpretation no. 46.* FASB FASBSee: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). defers implementation of Interpretation no. 46, "Consolidation of Variable Interest Entities" (www.alcpa.org/pubs/jofa/apr2003/news.htm#financial) and releases all exposure draft (ED) of a clarification (www.fasb.org/draft/ed_prop_lnterp_vie.pdf) of its requirements. The deferral deferral - Waiting for quiet on the Ethernet. applies only to such entities created before February 1, 2003, and gives companies and their auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together more time to determine which ones to include in their consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge . Companies must complete their evaluations and consolidate--for the first reporting period ending after December 15--those variable interest entities of which they are the primary beneficiary beneficiary Person or entity (e.g., a charity or estate) that receives a benefit from something (e.g., a trust, life-insurance policy, or contract). A primary beneficiary receives proceeds from a trust or insurance policy before any other. . Calendar-year companies must include such consolidations in their December 31 financial statements (www.fasb.org/news/nr100903.shtml. The board issued the ED in response to constituents' concerns about implementation requirements; its provisions would apply at the same time as those of the interpretation. Comments are due by December 1. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion