Changes in accounting and auditing for consolidation of variable interest entities

In 2009, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards (SFAS) No. 167 (ASC 810), which broadens the number of entities that will consolidate formerly unconsolidated off‐balance‐sheet assets and liabilities and otherwise changes greatly the framework for consolidated financial statements. Many entities had used qualifying special purpose entities and other vehicles to prevent them from applying the...