(revised December 2003)

Consolidation of Variable Interest Entities—an interpretation of ARB No. 51

Status

Issued:
December 2003

Effective Date:
For public entities (enterprises), either Interpretation 46 or this Interpretation shall be applied to variable interest entities or potential variable interest entities commonly referred to as special-purpose entities by the end of the first reporting period ending after December 15, 2003. This Interpretation shall be applied to all variable interest entities by the end of the first reporting period ending after:
March 15, 2004, for enterprises that are not small business issuers
December 15, 2004, for enterprises that are small business issuers.
For nonpublic entities (enterprises), this Interpretation shall be applied:
Immediately to variable interest entities or potential variable interest entities created after December 31, 2003
By the beginning of the first annual period beginning after December 15, 2004, to all other entities.
For enterprises that have fully or partially applied Interpretation 46 prior to December 24, 2003, special transition provisions apply.
For investments reported in accordance with the AICPA Audit and Accounting Guide, Audits of Investment Companies, and held by investment companies that are not subject to SEC Regulation S-X, Rule 6-03(c)(1), the effective date is deferred.

Affects:
Supersedes FIN 46

Affected by:
Paragraphs 1, 4(g), 5(b), 6, 7, 14, 16, 17, B1, B9, B11, B13 through B15, B22, and B23 and footnotes a, 3, 7, and 11 amended by FAS 167, paragraphs 3(a), 3(e), 3(h), 3(i), 3(j), 3(m), 3(n), 3(v), 3(ww), 3(x), 3(y), 3(z), 3(z), 3(d), 3(d), 3(e), and 3(g), respectively
Paragraphs 1A, 2A, 14A through 14G, 22C through 22E, 23A, and C'1 through C'109 added by FAS 167, paragraphs 3(b), 3(c), 3(k), 3(r), 3(t), and 3(bb), respectively
Paragraphs 4(c) and 4(d) deleted by FAS 166, paragraphs B7(a) and B7(b), respectively
Paragraph 4(d) amended by FSP FAS 140-4/FIN 46(R)-8, paragraph A2(a)
Paragraph 4(e) replaced by FSP FIN 46(R)-7, paragraph 6
Paragraphs 4(h) and 23 amended by FAS 141(R), paragraphs E34(a) and E34(c), respectively
Paragraphs 15 and B18 through B21 and footnotes 16a, 16b, 17, 25, and 26 deleted by FAS 167, paragraphs 3(l), 3(z), 3(b), 3(q), 3(s), 3(z), and 3(aa), respectively
Paragraphs 18 through 21 and footnote 16 replaced by FAS 141(R), paragraph E34(b)
Paragraph 22 amended by FAS 160, paragraph C12, and FAS 167, paragraph 3(o)
Paragraphs 22A and 22B added by FSP FAS 140-4/FIN 46(R)-8, paragraph A2(b)
Paragraphs 22A, 22B, 23, and 24 through 26 replaced by FAS 167, paragraphs 3(p), 3(q), 3(s), and 3(u), respectively
Paragraph 36 amended by FSP FIN 46(R)-7, paragraph 7
Paragraph B26 effectively amended by FAS 156, paragraph A10
Paragraphs C1 through C8 deleted by FAS 141(R), paragraph E34(d)
Paragraph F2(b) amended by FSP FIN 46(R)-4
Footnotes 8 amended by Accounting Standards Update 2010-08, paragraph A19(d)
Footnotes 18 and 23 amended by FAS 123(R), paragraph D17
Footnote 27 deleted by FAS 166, paragraph B7(c), and FAS 167, paragraph 3(aa)

Other Interpretive Releases:
FASB Staff Positions FIN 46(R)-1 through FIN 46(R)-7
FASB Staff Position FAS 140-4/FIN 46(R)-8

Issues Discussed by FASB Emerging Issues Task Force (EITF)

Affects:
Nullifies EITF Issues No. 84-40 and 90-15 and Topic No. D-14
Partially nullifies EITF Issues No. 95-6, 96-21, 97-1, and 97-2
Resolves EITF Issue No. 84-30

Interpreted by:
No EITF Issues

Related Issues
EITF Issues No. 96-16, 97-1, 04-5, and 04-7


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^*Note: Amendments as a result of the issuance of FAS 141(R) are effective for business combinations with an acquisition date on or after the beginning of the first annual reporting period beginning on or after 12/15/08.
^†Note: Amendments as a result of the issuance of FAS 160 are effective for fiscal years and interim periods within those fiscal years, beginning on or after 12/15/08, for all entities that prepare consolidated financial statements (except for not-for-profit organizations).


Abbreviations for Accounting Pronouncements
FAS - FASB Statements
FIN - FASB Interpretations
FTB - FASB Technical Bulletins
APB - APB Opinions
AIN - AICPA Interpretations
ARB - Accounting Research Bulletins
CON - FASB Concepts
EITF - EITF Issues
Q&A - FASB Implementation Guides