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


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

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).

  • 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


Basic knowledge of financial accounting and reporting.


No advance preparation required.

Level of Knowledge: 


CPE Credit: 
NASBA Field of Study: