FAS 167 intends to clear up accounting disclosures under Interpretation having to do with Variable Interest Entities

First Published Thursday, 9 July 2009 from Need to Know News

  • specifically to determine if an entities variable interests given it a controlling financial interest in a variable interest entity
  • eliminates exception for troubled debt restructuring
  • clarifies what qualifies as variable interest entity
  • requires more extensive disclosure on variable interest entities

**variable interest entities allow financial firms to keep assets such as subprime-mortgage securities off their balance sheets. VIEs used to be known as special purpose vehicles - the instruments that were part of the Enron debacle.


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