ASU 2014-07

The Private Company Council (PCC) added this Issue to its agenda in response to feedback from private company stakeholders indicating that the benefits of applying variable interest entities (VIE) guidance to a lessor entity under common control do not justify the related costs. Private company stakeholders stated that, generally, a common owner establishes a lessor entity separate from the private company lessee for tax, estate-planning, and legal-liability purposes—not to structure off-balance-sheet debt arrangements.