Accounting for Consolidations


Consolidated financial statements present  the results of operations and the financial position of a parent and its subsidiaries as if the consolidated group were a single economic entity. While different subsidiaries may operate independently, investors, regulators, and customers find consolidated financial statements more beneficial to assess the overall position of the entity. 

This course provides an overview of the authoritative guidance prescribed by Accounting Standards Codification (ASC) Topic No. 810, Consolidation.  The primary focus of this course relates to the application of the variable interest model, the related scope exceptions to applying the model, and the respective presentation and disclosure requirements.  Because the topic of consolidations is a very complex area of U.S. GAAP, illustrative examples have been incorporated throughout the course material to assist in the  learning process. 

Learning Objectives

Upon completion of this course, students will be able to:

  • recognize scope exceptions to the consolidations guidance
  • identify the key steps involved in performing a consolidation analysis 
  • identify exceptions to the application of the variable interest entity model
  • identify steps to be performed if a scope exception to the variable interest model applies 
  • recognize key information related to variable interests 
  • identify key information related to the determination of the primary beneficiary 
  • differentiate between the disclosure requirements for reporting entities with interests in variable interest entities 
  • identify examples of reconsideration events 
  • recognize key changes on the horizon related to the consolidation guidance

Designed For

Practicing CPAs, both in public accounting and business and industry -- controllers, accountants, and other financial accounting personnel


Familiarity with rules for consolidations and variable interest entity accounting

Advanced Preparation


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