Overview:
Ever since the Enron bankruptcy, the consolidation of off-balance sheet entities has been the focus of intense scrutiny by both the FASB and SEC. With the issuance of the FASB’s consolidation proposal, the accounting rules related to VIEs will change again. This seminar explores the complex world of VIE accounting and will enable you to:
- Understand the different consolidation models
- Apply probability weighting to different cash flow scenarios
- Determine whether an organization qualifies as a VIE under existing GAAP
- Learn about proposed changes to VIE accounting
Objective:
To help financial professionals avoid the pitfalls and develop a working understanding of FASB’s consolidation framework, including majority stock ownership issues, noncontrolling interests and VIEs. You’ll learn how to determine whether an entity is a VIE and if it should be consolidated.
Emphasis:
- Understand how the expanded consolidation standards arose
- The impact of noncontrolling interests in consolidation
- Determining which consolidation model, if any, is appropriate for an entity
- Applying the principles of probability weighted cash flow assessments (Concept Statement 7) to determine expected losses and residual returns
- What is variability in an entity and what interests are affected by that variability
- Explore the complexities of VIE accounting with real-world examples
- The new VIE qualitative assessment requirement
- Determining the primary beneficiary
- Reconsideration events
- Investments in assets and SILOs
- What is an implicit variable interest?
- Disclosure requirements
