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FASB Issues Update for Private Companies on Consolidation of Variable Interest Entities

Effective March 20, 2014, the FASB issued an accounting standards update which allows private companies to elect not to use VIE guidance when considering entities under common control and for which a leasing arrangement exists.  This standard is great news for privately held companies, and addresses a long-running problem in applying “Big GAAP” to small and medium sized enterprises.  Better yet, early adoption is permitted, so any financial statement not yet available for issuance can apply this standards update.