Consolidated versus consolidating financials reese witherspoon dating 2016
The focus of discussions in these materials is on some of the more frequently asked questions associated with using the FASB ASC 810 technical literature requirements and guidance. Using the guidance in FASB ASC 810-10-55-1B, there are circumstances under which combined financial statements, as distinguished from consolidated statements, of commonly controlled entities are likely to be more meaningful than these entities’ separate financial statements.As an example, combined financial statements might be useful if one individual owns a controlling financial interest in multiple entities that are related in their operations.Notice in the requirements spelled out above that nothing indicates that primary beneficiaries of VIEs would be allowed to issue be appropriate for primary beneficiaries to prepare combined financial statements including the VIEs because the preparation of combined financial statements is allowed only in certain situations in which consolidated financial statements are not required.
In certain circumstances, parent-only financial statements may be needed in addition to consolidated financial statements to indicate adequately the position of bondholders and other creditors or preferred shareholders of the parent.US GAAP: There is no exemption for general purpose financial statements.Consolidated financial statements are presumed to be more meaningful and are required for SEC registrants. Consolidation Model and Subsidiaries The definition of a subsidiary, for the purpose of consolidation, is an important distinction between the two frameworks.Given the common control relationship that exists with Company A and Company B through having one individual owning the entirety of the stock in both entities, issuing combined financial statements would be appropriate.Those statements most likely would be more useful to end-users of the statements when compared to having separate financial statements prepared for the two entities.