What it is
Before applying the voting interest model, a reporting entity decides whether an investee is a variable interest entity. If it is, consolidation turns on who is the primary beneficiary: the party with the power to direct the most significant activities and a significant obligation to absorb losses or right to receive benefits.
This worksheet scores up to five entities side by side. Section B tests the indicators of VIE status, section C tests the primary beneficiary conditions, and a formula conclusion states whether to consolidate, apply the voting interest model or apply other guidance. A documentation block records the basis for each answer.
When to use it
- When the entity holds an interest in a lessor, supplier, captive, trust or other structure with limited equity.
- When a reconsideration event occurs, such as new subordinated support or a change in governing documents.
- When an audit or review asks for the documented VIE and consolidation conclusions.
What’s inside
- Scope exception row and five VIE indicator questions
- Three primary beneficiary questions covering power, losses and benefits
- Formula conclusion per entity with an incomplete flag
- Documentation block with basis, related parties, reconsideration date and evaluator
- Summary tab with counts by conclusion
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
What makes an entity a VIE?
An entity is a VIE if its equity at risk is insufficient to finance its activities without additional subordinated support, or if its equity holders as a group lack the power, the obligation to absorb losses or the right to residual returns, or if voting rights are disproportionate to economic interests in the circumstances the guidance describes.
What makes the reporting entity the primary beneficiary?
Both conditions apply: the power to direct the activities that most significantly affect the VIE’s economic performance, and the obligation to absorb losses or the right to receive benefits that could be significant to the VIE.
Do related parties matter?
Yes. The evaluation considers the interests and decision rights of related parties and de facto agents. Document how each was considered.
When must the assessment be redone?
When a reconsideration event occurs, such as a change in the governing documents, a sale or purchase of interests, or additional subordinated support. Record the date of the last reassessment.
Related templates
- Consolidating Worksheet, Multiple Entities
- Noncontrolling Interest Roll-forward (ASC 810)
- Consolidation and Elimination Workbook (ASC 810)
- Related Party Transactions Schedule (AU-C 550 / ASC 850)
Last updated 11/05/2026. All free templates.