Previous month:
January 2017
Next month:
March 2017

February 2017

Recent FASB Release Affecting General Partners In A Limited Partnership

FASBIn January 2017, the Financial Standards Accounting Board (FASB) issued Accounting Standards Update (ASU) 2017-02, Clarifying When a Not-for-Profit Entity That Is a General Partner or a Limited Partner Should Consolidate a For-Profit Limited Partnership or Similar Entity.

ASUs released in 2015 regarding consolidations created uncertainty about when a not-for-profit entity (NFP) that is a general partner should consolidate a for-profit partnership or similar legal entity. (An example of a similar legal entity would be a limited liability company where the managing member is the functional equivalent of the general partner.) With the release of ASU 2017-02, the FASB eliminates diversity in practice and provides clear consolidation guidance to the parties involved. NFP general partners are now able to refer directly to the Not-For-Profit Entities section of the Codification (Subtopic 958-810) for consolidation guidance.

Continue reading "Recent FASB Release Affecting General Partners In A Limited Partnership" »