What it is
Consolidation starts with the decision on which entities belong in the group. Every interest is tested first as a variable interest entity, then under the voting interest model. After scope, the work shifts to eliminations, noncontrolling interests, translation and disclosure. A checklist keeps both stages in order.
This checklist has 45 items in seven sections plus a conclusion, each with Yes, No or N/A and a place to record the reference and where the support sits. It is a prompt list and does not replace the Codification or entity-specific analysis.
When to use it
- At each year end for entities with subsidiaries, joint ventures or other interests.
- When the entity acquires, disposes of or changes its interest in another entity.
- Before the auditor’s review of the consolidation file.
What’s inside
- Scope and decision path with the reconsideration check
- Voting interest model and variable interest entity control assessment
- Consolidation procedures: eliminations, uniform policies, translation
- Noncontrolling interests, deconsolidation and changes in scope
- Disclosure items and a conclusion block
Standard cited
This template follows ASC 810. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Which model is applied first?
The variable interest entity model. An entity that is not a VIE is evaluated under the voting interest model.
What happens to losses attributed to a noncontrolling interest?
They continue to be attributed even when the noncontrolling interest balance becomes negative. The checklist has an item for it.
How is a change in ownership without loss of control recorded?
As an equity transaction, with no gain or loss in earnings.
Does the checklist cover industry-specific rules?
No. It omits industry guidance such as investment company and employee benefit plan accounting. Add steps for the entity’s industry.
Related templates
- Consolidation and Elimination Workbook (ASC 810)
- Management Representation Letter: Consolidated Group
- Intercompany Reconciliation and Elimination Worksheet
- GAAP Disclosure Checklist (Private Company, Short Form)
Last updated 11/05/2026. All free templates.