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M&A Insights: FIN 46R Revised Again. Now It's All About Who Holds The 'Power'.

Sponsored By Deloitte

Topics:: Accounting > Accounting Standards; Banking & Capital Markets > Private Equity , Mergers & Acquisitions

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Abstract:: Historically, teaming between a Private Equity Investor (PEI) and a Corporate Partner wanting to deconsolidate a portion of its business was tricky at best. Control often didn't matter, as the FASB's consolidation model for variable interest entities seemed to sweep many structures into its grasp, and deal terms requested by PEIs frequently left the Corporate Partner faced with the prospect of continuing to consolidate the business. The FASB's recent revisions to FIN 46(R), however, may change that dynamic by incorporating the concept of "power" into what has historically been an economic-based consolidation model, potentially paving the way for deal structures that provide for increased economic flexibility for both parties and deconsolidation on the part of the Corporate Partner. Take a deeper dive into the revised rules and learn how "power" may change the rules of the road for corporate partnering arrangements.

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Released: February 09, 2010

Length: 5 pages

Format: PDF (635 kb)

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