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No. 2005-03
(January 2005)
SUBJECT: AMENDMENTS TO SOP NO. 78-9 TO CONFORM THE GUIDANCE TO THAT OP EITF ISSUE NO. 04-5 CONCERNING CONSOLIDATION BY A GENERAL PARTNER OF ITS INVESTMENT IN A LIMITED PARTNERSHIP
PRONOUNCEMENT ANALYZED: A Proposed FASB Staff Position (SOP No. 78-9-a)
EFFECTIVE DATE: See later discussion.
SUMMARY AND HIGHLIGHTS
THE PROPOSED FSP WOULD AMEND AICPA SOP 78-9 TO MAKE THE GUIDANCE THEREIN CONSISTENT WITH THE TENTATIVE CONCLUSIONS REACHED BY THE EMERGING ISSUES TASK FORCE IN EITF ISSUE 04-5 CONCERNING THE CRITERIA FOR CONSOLIDATION BY A SOLE GENERAL PARTNER OF ITS INTEREST IN A LIMITED PARTNERSHIP.
INTRODUCTION
At its November 2004 meeting, the EITF reached a tentative conclusion regarding the circumstances under which a sole general partner should consolidate its investment in a limited partnership. In accordance with that tentative conclusion (in Issue 04-5), a sole general partner is presumed to control the limited partnership, unless the rights of the limited partners overcome that presumption. The Task Force tentatively concluded that the evaluation of...