1 / 8

Consolidated Audits: Benefits & Challenges in Determining Control of Limited Partnerships

This article discusses the benefits and challenges of determining control in limited partnerships, focusing on the implementation date, test presumption of control, issues like cost and resource limitations, and mechanics of supplemental schedules and reporting by business lines.

tavon
Télécharger la présentation

Consolidated Audits: Benefits & Challenges in Determining Control of Limited Partnerships

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Consolidated Audits: The Benefits and Challenges October 6, 2009 Supportive Housing Network of New York

  2. Why • EITF 04-05 Determining When a General Partner, or General Partners as a Group, Controls a Limited Partnership or Similar Entity when the Limited Partners have Certain Rights

  3. When Implementation Date • - June 29, 2005 for new LP’s and existing partnership for which the partnership agreements are modified. • - No later than the beginning of the first reporting period of the fiscal year beginning after December 15, 2005 for all other LP’s

  4. The Test Presumption of Control – any one of the following: • Kick out rights Ability to be removed without cause • Participating rights Effectively participate in significant decisions that would be expected to be made in the ordinary course of the limited partnership’s business • Protective rights Limited partner’s ability to block certain action of the limited partnership (amendments, dissolution, acquisition and dispositions etc.)

  5. Benefits • Ability to tell story at enterprise level • Comprehensive picture by business lines • Demonstrates organization’s strength

  6. Issues and Challenges • Cost • Resource limitations • Fiscal vs. Calendar year ends • Consistency • 18 month or 6 month audit • Clarity or confusion • Trending issues

  7. Mechanics • Supplemental consolidating schedules • Reporting by business lines • Eliminating entries • Non controlling (minority) interest • Revenue recognition • Disclosures

  8. Multiple General Partners • Who has control • May result in no consolidation

More Related