ASC

ASC 810-952

Franchisors

810 Consolidation

Source downloaded: .Record version 1e222a16d5b6. Effective date must be checked in the source.

ASC 810-952 was the franchisor-specific consolidation guidance within the Consolidation topic, addressing when a franchisor should consolidate a franchisee entity (typically under the variable interest entity model). Every paragraph in the subtopic — the overview, scope, and implementation guidance and illustrations — was superseded by Accounting Standards Update No. 2009-17. As a result, the subtopic contains no operative guidance; franchisors apply the general consolidation model in ASC 810-10.

Key points (5)
  • All content of this subtopic, including 810-952-05-1 (Overview and Background), 810-952-15-1 (Scope), and 810-952-55-1 through 55-5 (Implementation Guidance and Illustrations), was superseded by ASU 2009-17.
  • Because no operative paragraphs remain, there is no franchisor-specific consolidation exception or illustration to apply.
  • Franchisors evaluating whether to consolidate a franchisee must instead apply the general variable interest entity and voting interest guidance in ASC 810-10.
  • ASU 2009-17 replaced the prior quantitative-based primary beneficiary analysis with a qualitative assessment of power over the activities that most significantly affect an entity's economic performance and exposure to potentially significant losses or benefits.
  • The subtopic remains in the Codification only as a placeholder documenting the superseded status and should not be cited as authoritative support.

For students. Know that this subtopic is entirely superseded — the common mistake is assuming franchisors have a special consolidation rule for franchisees; after ASU 2009-17 they simply run the general ASC 810-10 VIE analysis. On an exam, the right answer is to analyze power and economics over the franchisee, not to look for franchise-specific relief.

Machine-generated study aid for ASC 810-952. Check the source paragraphs below.

810-952-00Status

Source downloaded: .Record version aa3d81ce8d60. Effective date must be checked in the source.

810-952-00-1
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Subtopic 952-810SupersededAccounting Standards Update No. 2009-1712/23/2009

810-952-05Overview and Background

Source downloaded: .Record version 5b590bed9d6e. Effective date must be checked in the source.

810-952-15Scope and Scope Exceptions

Source downloaded: .Record version 3dac5c6c0f06. Effective date must be checked in the source.

810-952-55Implementation Guidance and Illustrations

Source downloaded: .Record version de37184b14cd. Effective date must be checked in the source.

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