Our guide brings together the relevant PwC guidance on the accounting for variable interest entities under US GAAP, provides an overall framework for the application of the VIE model, highlights key questions and answers, and offers our perspectives.
We have updated our accounting and financial reporting guide for Variable Interest Entities - 2013 second edition. The primary updates related to removing guidance which is now included in our accounting and financial report guide for Financial statement presentations – 2014 edition.
Recognizing that the application of voting control based consolidation accounting models to certain types of entities and structures did not result in the most meaningful financial presentation, the FASB created an accounting model to specifically address variable interest entities or “VIEs.” Over time, the FASB has made significant changes to the VIE consolidation model and is in deliberations following the issuance of an exposure draft to further amend the model.
The 2013 second edition of PwC's VIE guide provides the latest additional discussion and examples on a number of emerging practice issues involving the accounting for variable interest entities to consider in applying the model. The purpose of this guide is to clarify a complex area of accounting by bringing together, in one publication, all of the relevant PwC guidance on accounting for variable interest entities under US GAAP; to provide an overall framework for the application of the VIE model; to highlight key questions and answers; and to offer our perspectives, based on our analysis of the guidance and experience in applying it.
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