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FASB Releases ASU 2010-10, Defers FAS 167 Eff. Date for Certain Investment Funds

Feb 27th 2010
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Yesterday, FASB issued Accounting Standards Update No. 2010-10, "Consolidation (Topic 810): Amendments for Certain Investment Funds." (ASU 2010-10).

As described in an Action Alert sent by FASB earlier today: "Accounting Standards Update No. 2010-10 defers the effective date of the amendments to the consolidation requirements made by FASB Statement 167 [Amendment to FIN 46R] to a reporting entity’s interest in certain types of entities. The Update also clarifies other aspects of the Statement 167 amendments..... For many reporting entities (in particular, calendar year companies) these amendments are effective immediately."

Here are some excerpts from the ASU:

Accounting Guidance
The amendments to the consolidation requirements of Topic 810 resulting from the issuance of Statement 167 are deferred for a reporting entity’s interest in an entity (1) that has all the attributes of an investment company or (2) for which it is industry practice to apply measurement principles for financial reporting purposes that are consistent with those followed by investment companies. The deferral does not apply in situations in which a reporting entity has the explicit or implicit obligation to fund losses of an entity that could potentially be significant to the entity. The deferral also does not apply to interests in securitization entities, asset-backed financing entities, or entities formerly considered qualifying special purpose entities....

The amendments in this Update do not defer the disclosure requirements in the Statement 167 amendments to Topic 810. ...

Refer to ASU 2010-10 for full details.



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