Get a refresher on consolidation accounting with a deeper look at how to determine whether an entity is a variable interest entity (VIE). We cover key considerations, including understanding the entity’s purpose and design, identifying variable interests and equity at risk, and evaluating the characteristics used to determine whether an entity is a VIE.

This episode is part of our new Back to basics series, where throughout the year, we’ll revisit core accounting topics. It is the second of four episodes on consolidation. In our first episode, Back to basics: Consolidation—Getting started, we laid the foundation for consolidation accounting. Stay tuned for upcoming episodes covering how to determine which party, if any, should consolidate a VIE, followed by an episode on presentation and disclosure considerations.

Looking for more guidance on consolidation accounting? See PwC’s Consolidation guide. Additionally, follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to stay in the loop.

About our guests

Matt Sabatini is a deputy chief accountant in PwC's National Office who helps clients and engagement teams navigate the accounting and financial reporting for complex transactions. He specializes in the accounting for M&A, consolidations, corporate reorganizations, recapitalizations, joint ventures, and other investments.

Alexander Martin is a partner in PwC's Deals practice with over a decade of deals experience, helping clients solve complex accounting, financial reporting, and other business issues that arise from transaction-driven events such as mergers and acquisitions, divestitures, and capital raises.

About our host

Heather Horn is the PwC National Office Sustainability & Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

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