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→ Ask us: about Fin 46 (R)

FIN 46 (R) was introduced as a response to the Enron collapse. FIN 46 (R) deals with the accounting treatment of any entity in which a company has an interest, despite having no share ownership. The company’s interest is variable and still exposed to the risk and rewards of any of the entity’s future gains and losses. Companies which report under US GAAP need to consider the application of FASB Interpretation No.46 (R) (FIN 46(R)).

FIN 46(R) was designed to address the issue of off balance sheet entities, but FIN 46 (R)'s scope is very wide reaching. In order to comply with FIN 46 (R), companies must undertake detailed tests to determine the value of those assets in which they have a variable interest as a percentage of the total assets of the entity. In certain circumstances, under FIN 46, companies are required to consolidate such entities or account for the assets in which they have an interest, as investments.

At Intangible Business, we have experience in applying FIN 46(R) to complex international groups involving hundreds of legal entities. We have successfully created a logical, transparent step-by-step process for the application of FIN 46 (R) to ensure and demonstrate compliance.

If you have any questions, please call us on +1 312-794-7794 or send us an email.