Disclosure

In addition to disclosures required by other standards, the primary beneficiary of a VIE should disclose the following (unless the primary beneficiary also holds a majority voting interest):

• The nature, purpose, size, and activities of the VIE;
• The carrying amount and classification of consolidated assets that are collateral for the VIE’s obligations; and
• The lack of recourse if creditors (or beneficial interest holders) of a consolidated VIE have no recourse to the general credit of the primary beneficiary.

An enterprise that holds a significant variable interest in a VIE but is not the primary beneficiary should disclose:

• The nature, purpose, size, and activities of the VIE;
• The nature of its involvement with the VIE and when that involvement began; and
• The enterprise’s maximum exposure to loss as a result of its involvement with the VIE.

An enterprise should include the disclosures required by Statement 140 about a VIE in the same note to the financial statements as the information required by FIN 46. Information about VIEs may be reported in the aggregate for similar entities if separate reporting would not add material information.

Disclosures required during the transition period are discussed below.
Table 2 provides illustrative examples of required disclosures.

Continue Reading - Effective Date and Transition

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