On the Horizon
March 15, 2011
FASB
Board discusses consolidation and multiemployer plans at March 9 meeting
FASB adds taxonomy view to webpage
FASB
SEC updates SAB Series for FASB Codification
meeting
Board discusses consolidation and multiemployer plans at March 9
All decisions at Board meetings are tentative and may be changed at future meetings.
Decisions are included in an Exposure Draft only after a formal written ballot.
Decisions reflected in Exposure Drafts are often changed in redeliberations by the Board
based on information received in comment letters, at public roundtable discussions, and
from other sources. Board decisions become final after a formal written ballot to issue a
final Accounting Standards Update.
At its meeting on March 9, the Board discussed its projects on
consolidation policy and procedures and on disclosures about an
employer’s participation in a multiemployer plan. While the Board made no
decisions about multiemployer plans, tentative decisions reached on
consolidation policy and procedures are recapped below.
© 2011 Grant Thornton LLP. All rights reserved. This Grant Thornton LLP On the Horizon provides information and comments on current accounting issues and developments. It is not a
comprehensive analysis of the subject matter covered and is not intended to provide accounting or other conclusions with respect to the matters addressed in this issue. All relevant facts and
circumstances, including the pertinent authoritative literature, need to be considered to arrive at accounting that complies with matters addressed in this publication. For additional information on
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On the Horizon March 15, 2011
The Board tentatively agreed to modify as follows the consolidation guidance
for partnerships in FASB Accounting Standards Codification™ (ASC or
Codification) 810-20, Consolidation: Control of Partnerships and Similar Entities:
•
•
A general partner would consider its economic interests in a partnership,
including fees, when evaluating whether it should consolidate the
partnership. This modification would revise a tentative decision previously
reached by the Board.
The rebuttable presumption that a general partner controls a partnership in
ASC 810-20 would be replaced by a presumption that the general partner
has power over the partnership.
The Board also reached tentative decisions on transition provisions for the
proposed guidance on distinguishing an agent from a principal.
FASB adds taxonomy view to webpage
The Board recently added the SEC Document and Entity Information
Taxonomy view to its U.S. GAAP Financial Reporting Taxonomy webpage.
SEC updates SAB Series for FASB Codification
The SEC recently issued Staff Accounting Bulletin (SAB) 114 to update
references to accounting literature in the SAB Series to be consistent with
the current accounting guidance in the FASB Codification. Although some
formatting changes were also made for consistency, none of the
amendments are intended to change the guidance in the SAB Series.
Because of the numerous changes, SAB 114 consists of the entire 358-page
codified SAB Series.
SAB 114 is effective upon publication in the Federal Register.
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