Changing the rules of the road: FAS 167 impacts to the automotive industry

April 2010
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Changing the rules of the road: FAS 167 impacts to the automotive industry

At a glance

How will FAS 167 impact your your business and what guidance needs to be considered with the change in standards? Changing the rules of the road: FAS 167 impacts to the automotive industry provides key observations and recommended guidance when adopting FAS 167.

With the introduction of FAS 167, there are changes to the consolidation model that will significantly impact the automotive industry. FAS 167 introduces a consolidation model rooted in a qualitative determination that focuses on control of the most significant economic activities of the variable interest entity. Based on our initial observations and analysis, we believe that application of this new model will result in accounting conclusions that better reflect the substance of relationship among the parties. However, despite the improvements over the original FASB FIN 46 framework, the new consolidation model remains complex and may require significant effort and analysis to reach the appropriate conclusions.

How will FAS 167 impact your your business and what guidance needs to be considered with the change in standards? Changing the rules of the road: FAS 167 impacts to the automotive industry provides key observations and recommended guidance when adopting FAS 167.