FASB / PCC - Proposed exemption from “variable interest entity” guidelines for leasing arrangements 

August 27:  The FASB and Private Company Council (PCC) have proposed to  provide private companies that issue U.S. GAAP financial statements an alternative to the “variable interest entity” consolidation guidelines for some leasing arrangements.

If approved, the proposed measure would make it easier for private company lessees to enter into off-balance sheet leasing arrangements with affiliates.

As proposed, the guidance would apply to:

  • All entities other than public business entities
  • Not-for-profit entities
  • Employee benefit plans

Comments are due October 14, 2013.

Read an August 2013 report [PDF 102 KB] prepared by KPMG LLP: Defining Issues: PCC Proposes Optional Exemption from Consolidation of Variable Interest Entities

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