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GAO 03 1158 Accounting Firm Consolidation Selected Large Gao  Form

GAO 03 1158 Accounting Firm Consolidation Selected Large Gao Form

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the main principle to understand when evaluating whether an entity should be consolidated is whether the reporting entity has a controlling financial interest generally a controlling financial interest means consolidation is required in the past voting interests were the primary basis for determining who controlled an entity u.s gaap established that a voting interest greater than 50 percent was indicative of control resulting in consolidation as business has evolved organizations have become more creative with legal structures that are used to house specific transactions and their related assets and liabilities many of these legal structures have little to no equity interest or the shareholders lack the qualities that are typical in an equity ownership arrangement as such the determination of control solely based on voting interests needed to be changed today asc 810 contains two separate consolidation models to address this one for more traditional entities controlled through the vot

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