ASU 2016-17 — Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control

The Board is issuing this Accounting Standards Update to amend the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (VIE) should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. Under the amendments, a single decision maker is not required to consider indirect interests held through related parties that are under common control with the single decision maker to be the equivalent of direct interests in their entirety. Instead, a single decision maker is required to include those interests on a proportionate basis consistent with indirect interests held through other related parties.

This Update is the final version of Proposed Accounting Standards Update 2016-260—Consolidation (Topic 810)—Interests Held through Related Parties That Are under Common Control, which has been deleted.

Issued: October 26, 2016