Frequency of Updates:Annually
Focuses on issues relevant to small and midsize nonpublic entities.
PPC's Guide to Related Parties (Including Variable Interest Entities) addresses issues commonly associated with accounting for and disclosing related-party transactions, specifically focusing on accounting for variable interests in variable interest entities (VIEs).
Don't assume related to GAAP fpr variable interest entities doesn't apply to your clients. It deals with contractual and ownership interests (direct and indirect) and related party relationships commonly found in small and midsize nonpublic entities.
If your client has a relationship with an entity that is a business and any of the following conditions are met, the relationship should be be evaluated further to determine if GAAP related to VIEs applies:
- The client or its related parties participated significantly in designing or redesigning the entity.
- The entity is designed so that substantially all of its activities involve, or are conducted on behalf of, the client and its related parties.
- The client and its related parties provide more than half of the equity investment and similar forms of subordinated financial support for the entity.
- The entity's activities are primarily related to single-lessee leasing arrangements or securitizations.
Even if consolidation isn't required, additional financial statement disclosures may be required.
This Guide walks you step-by-step through this complex area. It is loaded with practical guidance, detailed case studies, extensive examples, and numerous flowcharts that will save you hours of research time and give you the knowledge you need to confidently and competently understand and address the difficulties of accounting for VIEs. If you compile, review, or audit the financial statements of entities with significant related party transactions, you can't afford to be without this Guide.