BDO Knows: Variable Interest Entities - Before Adoption of ASU 2015-02

August 2015

This Variable Interest Entity Practice Aid is intended to facilitate the following decisions:
  • Is an entity in the scope of the variable interest entity consolidation model in ASC 810-10?1
  • Does the reporting enterprise (RE) hold a variable interest (VI) in an entity?
  •  Is an entity a variable interest entity (VIE)?
  •  How is the primary beneficiary (PB), if any, of a VIE identified?
  • How should the RE initially adopt the VIE consolidation guidance?
  • What is the exemption provided by ASU 2014-072, and who is eligible for it?
  • How will ASU 2015-023 change VIE consolidation guidance?
  • How should the accounts of a VIE be consolidated and presented in the consolidated financial statements of the PB?
  • When should the status of an entity as a VIE be reconsidered?
  • When should the identity of the PB be reconsidered?