Common Control Entities and Consolidation of Variable Interest Entities

Richard C. Jones, PhD, CPA

The consolidation and reporting of related entities can be a complicated accounting topic, particularly for private companies that use separate legal entities to manage a diverse network of businesses and business interests. Often, these companies manage and fund a network of legal entities via a single parent company or through a small group of related entities, which this article refers to as “entities under common control” or “common control entities.”