VIEs & Consolidations: Special Accounting Rules Self-Study Webinar (11 Hours)

Overview: 

The consolidation of off-balance sheet entities has always been the focus of intense scrutiny by both the FASB and SEC. With the issuance of FASB’s ASU 2015-2 Consolidation (Topic 810), the accounting rules related to VIEs have undergone a dramatic change. This self-study webinar 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
  • Learn about the latest 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. This self-study webinar will also update you on the recent changes to consolidation guidance for certain legal entities from FASB’s ASU 2015-2 Consolidation (Topic 810).

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
  • How to apply the new guidance from ASU 2015-2 Consolidation (Topic 810)
  • 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 and disclosure requirements
  • Investments in assets and SILOs
  • What is an implicit variable interest?

Identify the ownership interest thresholds recognized under the cost and equity method of accounting

Identify the ownership interest thresholds recognized under the traditional voting interest model of consolidation

Recognize the basic accounting treatment used under the cost and equity method of accounting

Recognize the current terminology to express ownership interests in the context of consolidations

Recognize the appropriate income statement presentation of an entity’s less than wholly owned subsidiary under Topic 810

Identify events that would typically result in deconsolidation

Identify the accounting treatment ramifications of a parent entity loss of control but retainment of significant influence over the subsidiary

Identify the primary accounting rationale allowing much of Enron’s most aggressive accounting practices

Identify the then-relevant ownership threshold manipulated by Enron management

Recognize the overriding goal behind the evolution of the voting interest model

Recognize the characteristics necessary to prevent a limited partnership or similar entity from being labeled a variable interest entity

Recognize the separate determinations to be achieved by a qualitative analysis of the design of a legal entity in the context of the variable interest entity guidance

Identify the next analysis to be made upon determining that a reporting entity does or does not have a variable interest in another entity

Identify specified terminology under Topic ASC 810

Identify the implications of kick-out rights in the determination of the existence of a controlling financial interest for a LP or similar entity

Identify the objective of the related party tie-breaker rules within the context of Topic 810

Recognize the terminology associated with contractual arrangements within a VIE that economically isolate a portion of the VIE’s assets, related liabilities, and certain other interests

Recognize the circumstances in which a reporting entity holding an interest in another entity will result in primary beneficiary determination and consolidation

Recognize scope exceptions to the VIE guidance

Recognize the factors used to determine the purpose for which a legal entity was created and the variability it was designed to create and pass along to its interest holders

Recognize the definition of variable interests

Recognize the relative subordination between equity investments, beneficial instruments and debt instruments

Identify the asset ownership threshold at which an investor will not be considered to hold a variable interest in a potential VIE

Identify the characteristics under which an entity will be considered to be a variable interest entity

Recognize the minimum threshold at which Topic 810 indicates sufficient equity to permit the legal entity to finance its activities without additional subordinated financial support

Recognize the frequency with which the determination of whether an entity is a VIE should be reconsidered

Identify typical events requiring reconsideration of VIE status

Identify the relative importance of a qualitative assessment in determining which party involved with the VIE has the controlling financial interest

Identify the role of documentation regarding an entity’s consolidation decisions under ASC 810

Recognize the treatment of goodwill by the reporting entity when it is the primary beneficiary of a VIE that constitutes a business

Recognize a reporting entity’s financial statement presentation of specified assets and liabilities of the consolidated variable interest entity
 

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Price: 
$299.00
Prerequisite: 

Basic knowledge of financial accounting and reporting.

Preparation: 

No advance preparation required.

Level of Knowledge: 

Intermediate.

CPE Credit: 
11.00
NASBA Field of Study: 
Accounting