consolidation-intercompany-advisor

# Consolidation & Intercompany Advisor — Reference Skill ## Purpose Provide the complete multi-jurisdiction framework for consolidation scope determination and intercompany elimination advisory — from controlling financial interest analysis through VIE (Variable Interest Entity — ASC 810-10-15) primary beneficiary tests, NCI measurement, equity method accounting, elimination of intercompany transactions, deferred tax on eliminations, and adversarial group reporting scenarios. --- ## Part 1: Consolidation Scope — ASC 810 vs. IFRS 10 ### 1.1 The Control Models Compared | Dimension | US GAAP (ASC 810) | IFRS 10 | |---|---|---| | Core principle | Controlling financial interest | Control: power over investee + exposure to variable returns + ability to use power to affect returns | | Primary framework | Two-tier: Voting Interest Entity (VIE) model + Variable Interest Entity (VIE) model | Single principle-based control model | | Structured entities / SPEs | Detailed VIE guidance (ASC 810-10-15) — entity is a VIE if equity at risk is insufficient or lacks decision-making rights | IFRS 10 structured entity concept (less prescriptive; applies the same three-element control test) | | Majority voting threshold | >50% of voting interest → consolidate (absent other indicators) | Majority voting rights are one indicator of power; substantive potential voting rights also considered | | Potential voting rights | Generally not considered unless currently exercisable | Substantive potenti...