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FASB CONSIDERS PLAN TO EXEMPT PRIVATE COMPANIES FROM VARIABLE INTEREST ENTITY GUIDANCE

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The accounting standard originally known as FIN 46 has been through the wringer over the years ever since its inception after the Enron scandal.  It has always been recognized as a burden for private companies to apply the guidance and perhaps even comprehend the details the FASB put forth.  In a FASB board meeting held on March 8, 2017 it was decided that the FASB will formally consider exempting privately held businesses from applying the guidance in Topic 810 Consolidation as it relates to variable interests in businesses under common control.  This is potentially very good news for closely-held construction companies.  We will be keeping an eye on this topic.