Gaap consolidating joint ventures

Certain additional disclosures of the financial information of joint ventures are required in the individual financial statements, although the requirements of FRS 102 are less detailed than those of FRS 9.

AMONG ENRON’S PROBLEMS WAS ITS USE of variable interest entities, which allowed it to leave significant amounts of debt off its balance sheet.

This option will be attractive to venture capital companies, which may hold an equity stake for several years.

46 in January 2003 and a revised version in December 2003 to help companies decide whether to consolidate VIEs into their financial statements.Consolidated financial statements are required to be prepared by a parent entity, that is, an entity that has control over one or more subsidiaries.The definitions determining whether you have control of an entity are largely unchanged and include direct control, indirect control and the power to exercise control.Exemption from preparing consolidated accounts is also available if: FRS 102 specifically addresses special purpose entities.The basic principle is that where there is control, or a right to exercise control, or the activities are conducted on behalf of the entity according to its specific business needs, the special purpose entity will need to be included in the consolidated financial statements.