Consolidation Reorganization and Targeted Improvements (removed from agenda April 20, 2022)


The objective of this project was to reorganize the guidance in Topic 810, Consolidation.


The Board had learned from stakeholders that Topic 810 is difficult to navigate and is reorganized within practitioner guidance to assist practitioners and preparers in its application. Additionally, some stakeholders indicated that there are certain terms and concepts that are overly complex and could be clarified.

In response to this feedback, the Board issued the proposed reorganization Update on September 20, 2017. The objectives of the proposed Update were to reorganize the consolidation guidance into a new Topic (Topic 812) with separate Subtopics for variable interest entities (VIEs) and voting interest entities (VOEs) and to clarify certain items to make that guidance easier to understand and navigate. Additionally, the proposed Update relocated the “Consolidation of Entities Controlled by Contract” guidance to Topic 958, Not-for-Profit Entities, and superseded the guidance currently in Subtopic 810-30, Consolidation—Research and Development.

During the June 27, 2018 Board meeting, the Board decided to continue the project and provide a mapping of the existing Topic 810 paragraphs to the newly created Topic 812 paragraphs. Additionally, the Board instructed the staff to consider whether nonauthoritative educational material could be developed to address the more difficult parts of consolidation guidance, particularly for the complex concepts in the VIE guidance. However, because of the Board’s higher priority projects and anticipation of feedback on the 2021 Agenda Consultation, no further public Board discussions on the project were made.

Final Project Update:

During the April 20, 2022 Board meeting, the Board discussed feedback received in response to the 2021 Invitation to Comment, Agenda Consultation on (1) the current project to reorganize the guidance in Topic 810, Consolidation, and (2) the consolidation guidance more broadly. On the basis of this feedback, the Board decided to remove the project from its technical agenda.