Accounting standards for private enterprises – Joint arrangements and consolidation
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The Accounting Standards Board (AcSB) recently issued new section 1591, “Subsidiaries,” and section 3056, “Interests in Joint Arrangements,” and amended section 3051, “Investments.” The AcSB also withdrew AcG-15, “Consolidation of Variable Interest Entities.” Section 3056 replaces section 3055, “Interests in Joint Ventures,” and eliminates the free choice in accounting for joint arrangements.
The new and amended sections are effective for fiscal years beginning on or after January 1, 2016, with earlier application permitted.