consolidation

This Subtopic tells a REIT how to account for its investment in a "service corporation" — an affiliated entity, typically holding non-qualifying REIT activities, whose voting stock is largely held by others. Even without a voting majority, listed factors (activities performed primarily for the REIT, economic benefits flowing to the REIT, common board members/officers, nominal outside equity, management influence, access to financial information) indicate the REIT has at least significant influence, requiring the equity method or consolidation based on facts and circumstances (323-974-25-1). Service corporations that are variable interest entities are excluded and are instead evaluated under the VIE Subsections of Section 810-10.

This Subtopic addresses consolidation issues for construction contractors, principally the availability of proportionate gross presentation for investments in unincorporated entities (such as construction joint ventures) that are accounted for under the equity method. Per 810-910-45-1, referencing 810-10-45-14, proportionate gross presentation is generally prohibited for equity-method investments in unincorporated legal entities, but an exception exists when the investee operates in the construction industry (or an extractive industry). Its scope follows that of Subtopic 910-10 (see 910-10-15).

ASC 810-915 was the intersection subtopic that applied the consolidation guidance of Topic 810 to development stage entities (entities devoting substantially all efforts to establishing a new business without significant revenue). Every paragraph in this subtopic — including its scope, overview, and subsequent measurement guidance — was superseded by Accounting Standards Update No. 2014-10, which eliminated the concept of a development stage entity from U.S. GAAP. There is therefore no remaining substantive guidance here; consolidation of such entities is analyzed solely under the general Topic 810 model.

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 Every paragraph in the subtopic — the overview, scope, and implementation guidance and illustrations — was superseded by Accounting Standards Update No. 2009-17.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.

This narrow Subtopic deals with measurement issues for noncontrolling interests in certain real estate investment trusts (REITs). It contains almost no substantive guidance of its own: its scope simply mirrors Section 974-10-15, and its initial and subsequent measurement sections are essentially unused, with a single cross-reference pointing to Section 974-323-25 for how a REIT accounts for an investment in a service corporation.

This Subtopic tells a time-sharing developer-seller how to account for special-purpose entities (SPEs) it establishes in connection with selling time-sharing intervals. If the SPE structure is legally required by the jurisdiction in order to sell intervals to nonresident customers and the SPE holds no assets other than the time-sharing intervals and has no debt, the SPE is viewed as lacking economic substance and existing solely to facilitate sales; the seller then reports the unsold interests in the SPE as time-sharing inventory on its balance sheet rather than applying consolidation or equity/cost method accounting. All other SPEs are evaluated under the normal consolidation, VIE, and investment models.