Interaction Management

To accomplish the distinct objective while conveying, it is critical to deal with the procedure of correspondence successfully. Connection the board is acknowledged during all the phases of the correspondence procedure, and its adequacy relies upon the persons’ capacities to deal with their particular communication practices. Therefore, connection the executives depends on the people’s capacities to begin a discussion successfully, to build up the theme, to end a discussion with references to the premiums of the people partaking in it.Advertising We will compose a custom exposition test on Interaction Management explicitly for you for just $16.05 $11/page Learn More From this point, a capacity to situate to the requirements of different people and a capacity to feel the people’s enthusiasm for discussion are critical to build up the viable correspondence bringing about certain constructive results. Cooperation the board in intercultural correspondence can be talk ed about as progressively complex since it is important to focus on the parts of societies and conventions so as to deal with the procedure of correspondence as indicated by the principles which are run of the mill for the unmistakable society. The capacities of individuals to deal with their connections can be distinctive comparable to their aptitudes in seeing the data, deciphering it mindfully, and reacting to the realities enough or suitably to the solid circumstance. On the off chance that the correspondence procedure grows emphatically and brings about results which are acceptable or invaluable for all the gatherings, it is conceivable to talk about the significant level of cooperation the board. An individual who is acceptable in connection the board realizes when to begin the powerful discussion, how to build up the subject with references to the interests of the considerable number of gatherings, and how to address the issues of the members. For example, beginning a discuss ion with a representative on the issue of the low execution, a director evaluates the enthusiastic condition of the worker and his preparation to see the message gave by the chief. Any adjustments in the conduct of the representative ought to be seen by the supervisor as a decent communicator so as to have the option to change the line of a discussion and accomplish the essential objective of correspondence. For this situation, collaboration the board is firmly connected with the capacity to anticipate the advancement of the discussion and to concentrate on the conduct and needs of different gatherings as the markers of the communication’s viability. Be that as it may, numerous individuals center just around their own needs and interests while conveying. They for the most part disregard the inclinations of the gatherings and signs gave by them. In this way, those people who have lacking capacities corresponding to connection the board frequently start discussions with the ind ividuals who are not keen on conveying right now, and they don't furnish the gathering with the chance to introduce the individual perspective. For example, during short breathers, people can be engaged with the discussion with their partners who have the expectation to examine their own issues without references to the interests of different people partaking in the discussion. The initiator of a discussion can be talked about as a dominator for this situation, yet the entire collaboration process is incapable on account of disadvantages in the cooperation management.Advertising Looking for exposition on business correspondence? How about we check whether we can support you! Get your first paper with 15% OFF Learn More Interaction the board is significant for individuals to figure out how to impart successfully. Dealing with the procedure of correspondence, individuals can maintain a strategic distance from boundaries in their correspondence systems and accomplish the higher outcome s in their collaborations. The advancement of collaboration the board capacities ensures the advancement in the correspondence capability. This exposition on Interaction Management was composed and presented by client Leighton Duke to help you with your own examinations. You are allowed to utilize it for examination and reference purposes so as to compose your own paper; be that as it may, you should refer to it as needs be. You can give your paper here.

Pride And Prejudice By Jane Austen Essays (636 words) -

Pride And Prejudice By Jane Austen Jane Austen's Pride and Prejudice is the tale of an English family in the early 1800's. The focal topic in the story is the need of making a decent marriage for every one of the five girls in the Bennet family. Elizabeth Bennet is the focal character in the novel and the second most seasoned girl. The job of her sisters' characters impact Elizabeth's contemplations about her own sentimental intrigue, Fitzwilliam Darcy, all through the novel. Lydia Bennet, Elizabeth's most youthful sister assumes a significant job in Elizabeth's affections for Darcy. At last, Lydia's ill-advised conduct unites Elizabeth and Darcy, supporting Austen's depiction of Lydia as an ignoble, inert, and nonsensical young lady. Lydia Bennet's job in Pride and Prejudice is twofold. She is the first of five little girls to be hitched which underpins the novel's principle topic of the need of making a decent marriage. Her elopement with Wickham brings disfavor to the family, by and by, she marries which fulfills her mother's desire to see every last bit of her little girls wed well. The matter of her life was to get her little girls wedded. (Vol. I, Chapter 1). Lydia's job is likewise that of her mom's preferred little girl. She resembles her mom in numerous ways; heartless, straightforward, and brazen. In Lydia's creative mind, a visit to Brighton included each chance of natural bliss. She saw herself situated underneath a tent, carefully playing with in any event six officials at once. (Vol. II, Chapter 18). Lydia is the direct inverse of Elizabeth who is touchy, clever, and circumspect. Austen utilizes Lydia's rash conduct as a methods for Elizabeth, the focal character, to get that Darcy is the man who, in mien and gifts, would most suit her. (Vol. III, Chapter 8) Throughout the novel Elizabeth misconstrues Darcy's expectations and activities, and rejects his underlying proposition of marriage accepting that they are illsuited. At the point when Lydia absconds with Wickham, Elizabeth is embarrassed however understands that Darcy's past allegations against Wickham and her family were advocated. Goodness! how healthily did she lament over each ungracious sensation she had ever supported, each saucy discourse she had ever coordinated towards him. (Vol. III, Chapter 10) Darcy organizes the best possible marriage of Lydia and Wickham, sparing the whole Bennet family from slight what's more, humiliation. At the point when Elizabeth endeavors to express gratitude toward Darcy he concedes that the desire of offering joy to you...led me on, I considered just you. (Vol. III, Chapter 16) Lydia's crazy, ill-advised conduct gives the impetus for the commitment of Elizabeth and Darcy. All through the novel, Lydia is depicted as an uncouth, inert, silly multi year old young lady. She is inadequate in like manner sense and decision making ability, ignoring the outcomes of her activities. Look here, I have purchased this cap. I don't think it is lovely; in any case, I figured I should get it as not. (Vol. II, Chapter 16). When Lydia comes back to her family in the wake of eloping with Wickham she shows no regret for the disrespect she brought to the family. She abandoned sister to sister, requesting their congratulations...she followed supper to give her ring and brag of being hitched. (Vol. III, Chapter 9). After the marriage of Elizabeth and Darcy, Lydia proceeded with her dismissal for basic goodness as appeared in a letter to her sister; Wickham might want a spot at court without a doubt, furthermore, I don't figure we will have very cash enough to live upon without a few help. (Vol. III, Chapter 19). All through Jane Austen's Pride and Partiality, Lydia Bennet is depicted as a boorish and silly youthful lady; the most youthful of five sisters who is the first to wed. Lydia is a minor character in the story in contrast with her more established sister, Elizabeth, however she assumes a significant job in the marriage of her sister and Darcy. It is Lydia's ill-advised conduct (elopement) that makes Elizabeth fully aware of Darcy's actual goodness and fondness, permitting her to concede her affection for him. Both focal characters are capable beaten their pride and partiality, concede their own shortcomings, also, construct a steady, glad marriage.

Nurses Are Effective In Assisting Suffers Of Rheumatoid Arthritis In

Nurses Are Effective In Assisting Suffers Of Rheumatoid Arthritis In Nurses Are Effective In Assisting Suffers Of Rheumatoid Arthritis In Maintaining Mobility Andquality â€" Essay Example > Effectiveness of Rheumatology Nurses in Assisting Patients with Rheumatoid Arthritis in Maintaining Mobility and Quality of LifeRheumatoid arthritis (RA) is the most prevalent form of musculoskeletal disease. It is an inflammatory and systemic disease chiefly of the lining of the joints or the synovium. It is marked by pain and stiffness lasting for more than 1 hour in the morning or after a rest, and loss of function in the joints. It is a chronic autoimmune disease that results to alterations in the synovial membrane and articular structures, extensive fibrinoid degeneration of the collagen fibres in mesenchymal tissues, and by atrophy and rarefaction of bony structures. As the disease progresses, it causes deformities which are lumps (called rheumatoid nodules) usually in the wrist joints and the finger joints closest to the hand in a symmetrical pattern which means occurring similarly on both sides of the body (2003). Rheumatoid arthritis is one of the major sources of chronic pain and disability affecting the mobility and quality of life of millions of people worldwide. In Australia, as of June 2000, approximately 3.1 million of the populace is suffering from RA. This estimate accounts to approximately 16.5% of the population (Access Economics Pty Limited, 2001)Almost 60% of Australians suffering from RA belong to the workforce ages 15-64 years and this fact has a significant impact on socioeconomic aspect by subtracting from Australia’s productive potential. It hits women three times more than men. It is estimated that 15.8% of the female population have arthritis (Access Economics Pty Limited, 2001)Arthritis has a major economic impact. The figures above correlate to a considerable cost to the healthcare system and to the patient in terms of direct (medical expenses) and indirect costs (loss of earnings, early retirement). In general as of June 2000, the economic impact of arthritis costs the Australian economy roughly 9 billion dollars per year ( 1.4% of gross domestic product or $A469 per Australian) as estimated by (Access Economics Pty Limited, 2001). Out of pockets expenditures of all patients related to healthcare on the average is approximately $A1513 yearly. Notably, women spent more than men and the group below 65 years old spent considerably more than the older group. Expenditures cover prescription and non-prescription medication, assistive devices, tests and professional consultations (Lapsley et al. , 2002)With regards to the social aspect impact of RA, Lapsley et al. (2002) showed that sixty-five (65%) of the 81 participants testified that rheumatoid arthritis impinged on their social relationships. Consequently, the most common outcome was reduced opportunity for social interaction, seconded by reduced opportunity for sports or outdoor activity. Forty-six (46%) of the participants reported getting aid and support from family. relatives, and friends in the performance of various activities such as domestic indo or duties, shopping, carrying heavy items, domestic outdoor, driving and transport, opening jars and personal hygiene. Many patient suffering from RA are referred to Rheumatology departments. RA is typified by remissions and exacerbations of the disease process. Up to present, there is still no known cure to RA which is chronic (Arthur, 1994). Since RA is one of the most prevalent and painful chronic disease worldwide, a clinical approach with specialty team is likely consisting of physician/rheumatologist, orthopaedic surgeon, physical and occupational therapists, nurses, psychologists, social workers, dietitians, and bioengineers (Feng, 1989). Because of the growing number of patients with RA, it is likely that disease and care management will be a fundamental part of the extended nursing roles. Nurses play a vital role in improving the delivery of healthcare. With the advent of primary care trusts, nurse prescribing and extended roles, the role and function of nurses has evolve d (Gallez, 1998). This is particularly significant in chronic disease management and the birth of Rheumatology nursing as a specialty unit or a subspecialty unit of rehabilitation, orthopaedic or medical-surgical (Pigg, 1990). Assessment done by the nurse include patient information and teaching, helpline support, pain and symptom management, medication review and blood monitoring (Oliver, 2003).

The Concept Of Quality Of Life Versus Disability - 1137 Words

THE CONCEPT - QUALITY OF LIFE VERSUS DISABILITY Persons with disabilities are various and heterogeneous, while stereotypical views of disability emphasise wheelchair users and a few other â€Å"classic† groups for example, Blind people and deaf people. Disability includes the kid born with a congenital condition, for example, cerebral paralysis or the youthful trooper who loses his leg to a land mine, the moderately aged lady with severe arthritis, the more seasoned person with dementia, among numerous others. Health conditions can be visible or invisible; temporary or long term; static, episodic, or degenerating; painful or inconsequential. Persons with disabilities have various personal factors with differences in gender, age, socio-economic, sexuality, ethnicity, or cultural heritage. Every one has his or her personal inclinations and responses to disability. Disability covers a broad range of people having physical, mental, sensory and emotional or learning difficulties. Disabled people are infants, kids, teenagers, grown-ups, and elderly, and both male and female. Every person with a disability will have different needs and requirements. Eade and Williams (1995) said that Disabled people are handicapped in the public arena in light of the fact that they experience cultural, physical or social hindrances which keep their entrance to different frameworks of society that are accessible to other citizens . Were ‘Quality of life’ is considered to be the focal part ofShow MoreRelatedEarly Childhood Development: Breastfeeding and Child Milestones632 Words   |  3 PagesExplain Erikson’s concept of trust versus mistrust. Give a hypothetical situation of a parent–infant interaction that leads to the infant developing trust and a hypothetical situation in which the infant would develop mistrust. Trust versus mistrust is the first stage of Erikson’s theory of psychosocial development. This stage occurs between birth and 18 months of age. 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Utilitarianism The Bakery - 1212 Words

Utilitarianism Essentially, all the stakeholders involved should be offered their fair consideration in the business. As the owner of the bakery, if Nick had chose to overdo his profits and play down his losses, his business would probably continue to flourish as he will be receiving the loan of $100,000 from East West (EW) Bank. Because of Nick’s utilitarianism decision, Gwen and Ted got to keep their job even though the business at the bakery was struggling due to the slump in economy. And as a result of keeping Gwen, Molly has extra hands in keeping the bakery intact. Now, when Nick decided to change the business’ profits and losses to his benefit in order to get the loan granted, East West (EW) bank may suffer a loss from it if Nick does not have enough revenue to pay the loan back in the near future. It is considered ethical for Nick to overdo his profits and play down his losses on his loan application to East West (EW) Bank since it does the most good and provides the least har m. To put it in a different way, the utilitarianism approach creates the utmost balance of good over harm for Nick. Despite the fact that Nick forged his business’ profits and losses on his loan application, he managed to lend a helping hand to the other stakeholders and minimize the damage caused. Kant Ethics On the other hand, Nick should have dismissed Gwen and Ted as employees at his bakery. It is morally correct because his business is suffering financially and he isShow MoreRelatedTest 1 Question Bank8509 Words   |  35 Pagesthat Paul will assume the mortgage and that Brice will be completely discharged from all further liability on the mortgage. d. | The agreement among the three is a novation. | 41. Miller has a contract to sell 1,000 bushels of wheat to Wonder Bakery. Miller’s wheat is stored in a grain elevator and has become infested with insects. What is the consequence? c. | Miller is not discharged, but remains liable on this contract. | 42. The usual remedy for breach of contract is: d. | money

Sophomore English Exam Study Guide Free Essays

The Glass Menagerie- By: Tennessee Williams Setting- After the Great Depression, before World War II; 1937 In SST. Louis, Missouri The Way Tennessee Williams broke away from straight realist staging: 1 . Had his major character also be the narrator (Tom Winnfield) 2. We will write a custom essay sample on Sophomore English Exam Study Guide or any similar topic only for you Order Now Incorporated a screen device into his plays to emphasize important details and actions on stage 3. Removed props 4. SE of lighting Problem with memory play: Details could be omitted or left out; biased, exaggerated details Symbolism- a person, place, or object that has its own meaning but can suggest other meanings as well Genre- Tragedy 3. Death off Salesman- By: Arthur Miller Genre- Tragedy Setting- Late sass’s; Brooklyn- Present; Boston- Flashback Tense- Past and Present Protagonist- Wily or Biff Loan Antagonist- Wily or Biff Loan American Dream- an antagonist dream This play attacks the materialistic aspect of the American Dream He believes the achievement of wealth and success without integrity Background information is given through flashback Flashback- action that interrupts to show an event that happened in an earlier time which is necessary for understanding Expressionism- when an artist distorts reality to create an emotional effect Parental Dilutions- parents who have high expectations set for their children 4. A Streetcar Named Desire- By: Tennessee Williams Setting- New Orleans, Louisiana; sass Protagonist-Balance Dubos Conflicts 1. Balance Vs.. Self 2. Balance Vs.. Stanley II. Short Answer The Glass Menagerie Techniques to break away from straight realistic staging 1. He had his major character also be the narrator (Tom Winnfield) 2. Incorporated a screen device into his plays to emphasize important details and actions on stage Key words he would want the audience to recognize 3. Removed props Distracting; Allows to concentrate more on character plot 4. Use of lighting Dimmed the lights; Low and hazy; Memory play Tennessee Williams used 4 different techniques to break away from straight realistic tagging and make his pays different than others. First, he made his main character in the play also be the narrator. In The Glass Menagerie, Tom Winnfield is both the main character and the narrator because it is his memory and told from his point of view. Also, he eliminated the use of props in some scenes. Williams believed props were a distraction and taking them away would help the audience focus on character development and plot. Tennessee Williams also used a screen device. The screen device displayed several words he would want the audience to recognize to guide them to think or feel a certain way. Lastly, he dimmed the lighting to create a hazy look. This lighting effect would help the audience remember the play was from memory. Death of a Salesman Techniques to distinguish past from present/reality from illusion 1 . Stage Directions/ Setting 2. Character’s Appearance and illusion. These techniques include character appearance, setting change, and stage directions. For example, young Wily Loan was very fast moving and energetic. However, old Wily Loan is grumpy, slow moving, and dull. An example of setting change would be from the Loan’s household to either Boston or a football field. Incorporated with setting change is stage directions. They indicate when the setting changes. For example, in the past, the Loan household was surrounded with many trees, leaves, and beautiful scenery. However, in the present, the house in surrounded by apartment buildings and the mood is dark and dull. Streetcar Named Desire Difference between this play and The Glass Menagerie with regards to the theme of illusion as an approach to reality The Glass Menagerie is hazy and filtered based off of memory. A Streetcar Named Desire is crude and more forward to reality. The Merchant of Venice Conflict/Resolution The conflict in The Merchant of Venice is that Bassoon is poor and needs Antonio help him woo Portia. Antonio can only turn to Shylock, who is Jewish and thus hated. Antonio has to sign away a pound of his flesh as a guarantee on Bassoon’s loan. Bassoon finally gets a go at Portia, but he’s got to pick the right casket. The resolution occurs when Portia reveals everything and Antonio is rich again. Portia accepts Notation’s apology and goes even further, ensuring that, even if he’s lost his friend, he’s got his money back. Ill. Long Answer 1 . Tragedy/Tragic Hero (A Streetcar Named Desire/Balance Dubos by Tennessee Williams) Balance Dubos is a tragic hero because she has a tragic flaw that ultimately leads to her downfall. Blanches flaw is her inability to accept reality or where she is right now. She lives her life in illusion to escape her reality. However, she is forced to face reality after her sister’s husband, Stanley, raped her. After this occurrence, Balance starts to go crazy and insane. She is sent to a mental institution. 2. Characteristics of a One Act Play (He Said She Said by Alice Greenberg) Origin- may be traced to the very beginning of drama Unities- conform to the Classical Unities of drama developed by the philosopher Aristotle; unity of time, unity of place, and unity of subject Unity of Time- He Said She Said takes place within 24 hours Unity of Place- He Said She Said takes place in one setting, the Helmsman’ household gossiping Time- usually between 10-40 pages long He Said She Said is 16 pages long Setting- one scene He Said She Said all takes place in the Helmsman’ living room Plot- simple; one of the most important elements to any play is conflict Gossiping Characters- differ from full-length plays in their scope; fewer characters or a more impel setting; focused on a main character and a single incident or goal; little time for subplots; usually 4 or less characters Felix, Enid, Mrs.. Packard, and Diana Exposition- most avoid extensive exposition In He Said She Said, it gives the background information that Felix and Enid Hellman have a great relationship. This is necessary for proper understanding because the plot is relevant Subtext- unspoken thoughts and motives of the characters?what they really think and believe; seldom breaks through the surface of the dialogue except in moments of extreme conflict; gives the performers something o do] Stage Direction- contains simple and direct stage direction 3. Motivation (Wily Loan/Death of a Salesman) Wily Loan’s death in Death of a Salesman is a result of his motivation. His motivation was his want to provide and supply for his family, and also his want to prove to Biff that he was right. Wily knew that if he died, his insurance money would be given to his family so they could live good, happy lives. Also, Wily wanted to prove to Biff that he was right about being personally attractive and liked was all that mattered. Through his death, Wily was hoping to show to Biff that he was right by a on of people showing up to his funeral. Also, Wily died with a sense of personal dignity, believing he was right all along. 4. Contribution of a Minor Character (The Glass Menagerie by Tennessee Williams) Jim O’Connor, a minor character in The Glass Menagerie, helps contribute to the character development of Laura. Although he may be a minor character, his role in the play is necessary for plot development. He is the most realistic character in the entire play. He is a symbol of hope for Laura. Jim is the person that Laura and her family having been waiting for their whole lives because everything will change. 5. Dynamic and Static Character (A Streetcar Named Desire by Tennessee Williams) Balance Dubos is a dynamic character in A Streetcar Named Desire. In the beginning, she used illusion to escape her reality. However, by the end of the play, she is forced to face reality when Stanley rapes her. From that point on, she was never the same. She went from being somewhat normal to completely insane. Stanley is a static character because throughout the play he remains the same. From start to finish, he is very aggressive and never liked Balance. 6. Foil Character Merchant of Venice is a comedy because it fits the characteristics 1 . Young lovers struggling to overcome obstacles 0 Jessica and Lorenz are madly in love and want to be together, but Jessica father, Shylock, is trying to do everything he can to keep them from marrying. Also, Bassoon and Portia marry. 2. Mistaken Identity 0 Jessica deceives her father when she disguises herself as a boy and runs off to marry Lorenz. Portia cross dresses as a male lawyer and shows up in the courtroom to defend Antonio 3. Clever plot twist with multiple plot lines 0 2 main plots: Bassoon’s adventure playing the lotto to win a rich wife, and Schlock’s recruits of Notation’s pound of flesh 4. Puns 0 Marriage; Just about everybody is married (Lorenz and Jessica) (Bassoon and Portia) Antonio is a comic hero because he has a minimal level of personal charm and worth of character who wins the audiences approval. The audience likes Antonio because he values friendship and love. Antonio is also a Christian which The Merchant of Venice favors Christians instead of Jews. Antonio is a worthy character because he risks his own life in the hands of Shylock to lend money to give to his best friend, Bassoon, to win Portrait’s heart. How to cite Sophomore English Exam Study Guide, Papers

Central Role of Entitativity in Stereotypes †MyAssignmenthelp.com

Question: Discuss about the Central Role of Entitativity in Stereotypes. Answer: Introduction: Everyone has their own perception and thinking about a particular event. It is not necessary that every person perceive the similar events identically. There can be difference in the perception of different people. This is because perception portrays the thought processes of the person or it can be said that the way a person thinks is the base of what he will perceive about a particular event (Young, Hellawell and Hay, 2013). Perception designed the behaviour or the response of the person to a particular situation or stimuli. This is reason why behaviour and response of the person also differs with the difference in their personality and thinking. When many of the individual faces any situation, he used to organize the information he observes and then process it to take out an outcome. The difference in their process of aligning and assessing the information makes the people different (Walker-Smith, Gale and Findlay, 2013). There are many factors that can affect the change in perception of the people at personal life as well as on the workplace. These are the factors related to the vicinity environment of the people. As the environment changes, it may be possible that the perception of an individual towards a particular thing or event can also change (Gibson, 2014). The attitude and the behaviour of the person also results in biasness in perception. As the individual makes a perception about an event, they become bias as well. Some of the factors are discussed below that leads to distortion in the perception and biasness in the mature of the people (Broadbent, 2013): Selective perception is the first and the major factor that affect perception of the individual. Everyone receives large amount of information from the outside stimuli. It is not possible for the individual to observe everything or assesse very information (Slovic, 2016). Thus, the final behaviour of the person demands on what that person has selected to observe from the information. This selective information forms the selective perception of the person. At the same time, it is possible that another individual have selected different type of information from the same stimuli and thus have different perception from the first person (Krishna, 2012). Selective tendency lead to biasness because the individual used to observe the information according to his comfort and ideas. In this type of selection, the individual looks only for the information he believes in and thus leads to biased decisions. Another factor that can affect the perception of the individual is stereotype. It can be d efined as the generalized thinking that has been framed by an individual for a particular group of people (Chen and Tsai, 2007). When an individual judges a person belongs to a particular group than the shortcut method of stereotyping is used to make the perception. Stereotyping allow the people to manage the small amount of information available for a particular type of people. It is very simple method of evaluating others by looking for the characteristics of the group they belongs to. It is very common method to be used from making perception (Mancini, Longo, Kammers and Haggard, 2011). However, it is common does not mean that it can be accepted as the universal method and is always correct. It can develop errors or distort the perceptions from truth. At the workplace, stereotype develops negative results. This is because the whole group is perceived to be of a particular kind only by assessing or interacting with a particular person from the group (Spencer-Rodgers, Hamilton and Sherman, 2007). It is not necessary that the person can represent the whole group by his views. There can be different views and attitude of the people in a single group as well. Sometime the perception of the individual can be made only by judging only one traits of the person. This method of making perceptions is called Halo effect. It is the effect that results in perception by only one trait of the individual and assuming that the other traits are also associated with this trait only. For example, if a girl is beautiful and attractive, the boss perceived that she is intelligent and god performer (Hu and Lindemann, 2009). Later on he realized that he is not good in typing. This is the perception error he has in his mind because of the one trait of that girl that is beauty. Halo effect creates error in the perception nada los creates biasness (Hu and Lindemann, 2009). As in the above case, the boss thinks that beauty means intelligence which is the wrong perception. Beauty is diff erent trait and intelligence is very different. It is saying that first impression is the last impression. This is because when a person met another person first time, he perceives something from his personality and then it becomes his perception for that person for life time. This is not always true and thus first impression can also distort the person and create biasness. It is very difficult for the individual to change the first impression they had on another person. But that does not mean that if a person has been arrogant at the time when he was observed by another person is arrogant in nature (Sikdar and Mitra, 2012. It depends on the situation when the two people met or confront each other. There may be another reason behind such behaviour of the person. Therefore, making a perception only by judging the persons first impression is also wrong. Contrast effect can be learnt in this context of making perception. Contrast effects are the effects that are very different from the environment and draw the attention of other. This also helps in making or creating the perception for a person. Projection is another factor that can alter the perception of the people. The next factor that can be considered to have an impact of the perception is the projection. Projection refers to perceiving others as own. The people who believe in projection perceive the individual as what they like to perceive and what they are rather than whet that person is. This is a very wrong way of perceiving others as this have many errors. There are many implicit theories of individual that support them to have perceptions. These theories are made by tem only and this decides their way to perceive other person. These theories can be correct for one person but may get wrong for different person and thus create distortion in the perception (Nosek, Smyth, Sriram, Lindner, Devos, Ayala, Bar-Anan, Bergh, Cai, Gonsalkorale and Kesebir, 2009). Distortion in the perception is the very big issue and this needs to be overcome by the people in their personal as well as professional life. This is because distortion or wrong perception about any individual may lead to harmful effects for them. There are many ways in which an individual can improve or correct their perception process in their personal life. The first way is to improve self-perception. Self-perception is based on self-esteem and it is very personal that it cannot be judge as wrong or right (Hammi, Samp, Rmuzat, Auray, Lamure, Aballa, Kooli, Akhras and Toumi, 2014). The individual himself has to identify the negative and positive of his perception process and then try to overcome the negative part so that this factor may not distort his perceptions. Avoiding schemata is another way to resolve this issue. Schemata means the set of information perceived or observed by the person that becomes the basis for that person to perceive others. Following the pattern every ti me in perceiving others result in distortion and the individual should avoid this. There are many environmental factors such as society, family etc. that affect our thinking process and perceptions towards a particular event. It is very necessary fir the person to be critical in judging these social factors that affect the thinking. This is because these factors not only provide the positive perceptions but sometimes lead to develop negative perception that may be wrong. Sometimes, the people develop their own prophecies to judge anther individual. For example, there was a biology teacher in a school who belongs to China. Students thought that he would not be a good teacher as he does not know how to speak English properly (Pronin, 2008). This was a very wrong perception made by their own assumption that he belongs to China and cannot speak good English without actually experiencing his teaching. This made their perception wrong and distorted. Better communication and interaction ma king the people can resolve this issue. It is required by the people to communicate more with the people so that they can better judge them by assessing al their qualities rather than making assumptions. If two people properly interact with each other, they get to know each other better and make their perception by assessing the actual traits of the person. There will be no other environmental factor that can affect their thought process that time. If a person chooses his or her life partner, they took time to know each other rather then deciding after one meeting. This is because interacting and communicating with each there helps them to develop better understanding. It is not only in personal life but at the workplace also, this issue of distortion in perception generates. At organizational level, it is very important to have correct perception in order to make better decisions for the human resource of the organization. Any distortion in the minds of the manager about a person can lead to wrong decision of promotion or demotion and thus can affect a persons life very badly (Pronin, 2007). At the organizations, the management of the company has to take many decisions regarding training, promotion, Pay scale etc. this decision shouldnt be made on assumptions and should be made on assessing all the factors and the traits of the employees. The management should implement some of the strategies such as 360 degree analysis, interviews, and other evaluation techniques to judge the person. This is because these techniques where all the employees of the organization participate and all the factors of the organization are considered can only lead to bett er and efficient decision. An example can be taken in order to understand the concept better. Suppose, if a manager has to choose a team leader in his team. He used the method of stereotype and selected the person who belongs to an educated family to be a team leader. This is his perception that the person belongs to a good and educated family that means he can be a team leader but in reality it was not the case. After sometime the manager realized that another person of the same team is doing very good in his work and have all the skills of leading the team (Moore and Small, 2007). This suggests that assessing the skills of the person is required to take such decision rather than the perceptions. Perception are the part of an individuals personality and thus it is not necessary that every person always perceive things right. It is also not important that every individual behave similarly in every situation and perceive similar thing about a particular person. Distortion in the perceptions is very common practice but it should be removed by the people in order to take better decision about others. It can be concluded that every individual should assess the environment and other factors that can help in making perceptions of the people. References: Broadbent, D.E., 2013.Perception and communication. Elsevier. Chen, C.F. and Tsai, D., 2007. How destination image and evaluative factors affect behavioral intentions?. Tourism management,28(4), pp.1115-1122. Gibson, J.J., 2014.The ecological approach to visual perception: classic edition. Psychology Press. Hammi, E.E., Samp, J., Rmuzat, C., Auray, J.P., Lamure, M., Aballa, S., Kooli, A., Akhras, K. and Toumi, M., 2014. Difference of perceptions and evaluation of cognitive dysfunction in major depressive disorder patients across psychiatrists internationally.Therapeutic advances in psychopharmacology,4(1), pp.22-29. Hu, G. and Lindemann, S., 2009. Stereotypes of Cantonese English, apparent native/non-native status, and their effect on non-native English speakers perception.Journal of Multilingual and Multicultural Development,30(3), pp.253-269. Krishna, A., 2012. An integrative review of sensory marketing: Engaging the senses to affect perception, judgment and behavior.Journal of Consumer Psychology,22(3), pp.332-351. Mancini, F., Longo, M.R., Kammers, M.P. and Haggard, P., 2011. Visual distortion of body size modulates pain perception.Psychological Science,22(3), pp.325-330. Moore, D.A. and Small, D.A., 2007. Error and bias in comparative judgment: on being both better and worse than we think we are.Journal of personality and social psychology,92(6), p.972. Nosek, B.A., Smyth, F.L., Sriram, N., Lindner, N.M., Devos, T., Ayala, A., Bar-Anan, Y., Bergh, R., Cai, H., Gonsalkorale, K. and Kesebir, S., 2009. National differences in genderscience stereotypes predict national sex differences in science and math achievement.Proceedings of the National Academy of Sciences,106(26), pp.10593-10597. Pronin, E., 2007. Perception and misperception of bias in human judgment.Trends in cognitive sciences,11(1), pp.37-43. Pronin, E., 2008. How we see ourselves and how we see others.Science,320(5880), pp.1177-1180. Sikdar, A. and Mitra, S., 2012. Gender-role stereotypes: Perception and practice of leadership in the Middle East.Education, Business and Society: Contemporary Middle Eastern Issues,5(3), pp.146-162. Slovic, P., 2016.The perception of risk. Routledge. Spencer-Rodgers, J., Hamilton, D.L. and Sherman, S.J., 2007. The central role of entitativity in stereotypes of social categories and task groups.Journal of personality and social psychology,92(3), p.369. Walker-Smith, G.J., Gale, A.G. and Findlay, J.M., 2013. Eye movement strategies involved in face perception.Perception,42(11), pp.1120-1133. Young, A.W., Hellawell, D. and Hay, D.C., 2013. Configurational information in face perception.Perception,42(11), pp.1166-1178.

Legal Formalism Progressivism in U.S. from 1865 to 1930 free essay sample

Defines legal philosophies their impact on judicial social rights of women blacks. LEGAL FORMALISM AND PROGRESSIVISM: TREATMENT OF WOMEN AND AFRICAN-AMERICANS (1865-1930) This research discusses the role of legal formalism and legal progressivism in the treatment of women and African-Americans between 1865 and 1930. The debate over legal philosophy which was played out during this period figured prominently in the outcome of important cases involving women and blacks. That controversy was a symptom of deeper social divisions which inhibited progress during this period. The inroads made by legal progressivism on legal formalism set the stage for later gains by these groups. Law as Barrier to Social Progress in the late 19th Century In the decades which followed the Civil War, Americans were primarily preoccupied with the explosive economic growth that..

Half Price Books Summer Reading Program for Kids

Half Price Books Summer Reading Program for Kids Updated for the Half Price Books 2019 Summer Reading Program The Half Price Books summer reading program for kids gives out free Half Price Books gift cards to kids who read for at least 300 minutes during the months of June and July. This program is available  to kids preschool through middle school. The Half Price Books summer reading program for 2019 is called Feed Your Brain Summer Reading Program and it runs from June 1 to July 31, 2019. Looking for more summer reading programs that will score your kids some freebies? Check out my list of the best summer reading program freebies  where you can get free stuff from Barnes and Noble  and more. Rewards Available From the Half Price Books Summer Reading Program If a child reads at least 300 minutes during June and July they can submit their reading log to get $5 worth of HPB Bookworm Bucks for each month. These can be applied to a pre-tax amount of a single transaction. How to Get Free Gift Cards From the Half Price Books Summer Reading Program Visit the Feed Your Brain Summer Reading Program website, and download the Feed Your Brain Reading Log. Theyll need two logs, one for June and one for July. Each day your child reads during June and July have them write the number of minutes theyve read on that day on the calendar. The goal is to read at least 15 minutes each day of the week. At the end of each week, kids can add up their weeks total minutes and have a grown-up initial it. Total minutes for the month can be added up at the bottom of the calendar. After the child has read at least 300 minutes, fill out their name, age, and total minutes, as well as your name, email, and location information. Cut out the completed part of the form and bring it to your local Half Price Books to get your reward. The reading logs are due no later than August 29, 2019. Encouraging Your Child Through the Half Price Books Summer Reading Program When your kids are finished with a week, a month, or the whole program, you can fill out a Half Price Books Feed Your Brain Reading Award to keep them encouraged about their progress.   If you want to make some suggestions on what your child reads this summer, Half Price Books has put together a list of staff picks by grade level, best alphabet books, 40 books every child should read, and 21 books to start babys library. Limits to Be Aware Of The reading program is for kids 14 years of age or younger, in 8th grade or under. Theres a limit of one reading log per month, for each child. The HPB Bookworm Bucks expire August 31, 2019.

Globalization in the Context of Ghana Development Prospects Essay

Globalization in the Context of Ghana Development Prospects - Essay Example Ghana’s story, like many African and South American countries, is a story characterized by a mixed fortune of charismatic leadership with a determination to bring economic prosperity within their soil. With a dream of development prospects to the western standards, the original desire of Ghana’s leadership after independence was a state of parity in a record time of ten years under ideological stewardship of Kwame Nkrumah. Even though development was never fully achieved within the period, international political influences remained fully ingrained in the country’s undertakings. From independence upfront, Ghana adopted foreign policy principles and ideals of nonalignment and Pan-Africanism enunciated by Kwame Nkrumah’s tenure. Accordingly, the adoption of nonalignment stand was a counter-strategy measure against the infiltration of antagonistic policies perpetuated by alliances of both the East and West power blocs. On the other end, Pan-Africanism was a c ooperative visionary policy aimed at liberating the continent from Western colonialism and uniting it for a more consolidated economic and political independence (Ofusu par 33). The country’s active participation in the various organizations such as the United Nations, African Union, and ECOWAS is a clear indication of its commitment to the maintenance of friendly relations and cooperation on the basis of mutual respect and noninterference from other countries irrespective of ideological differences.Taking colonialism off their shoulders, the post-independence national reconstruction placed Ghana as a middle-income country by the 1960s, with its citizenry enjoying relatively stable socio-economic standards of living. As fate would have it, political instability coupled with economic mismanagement by the military juntas in the 1970s eroded the positive economic gains at independence, eventually plunging the country into severe socio-economic crisis. As the wee hours of the 197 0s approached, the country’s gross domestic product’s declining rate was alarming, pushing every sector

What roles do interest groups play in influencing public opinion and Essay

What roles do interest groups play in influencing public opinion and the political process What kinds of interest groups are they How do they contribute to, or hinder a healthy democracy - Essay Example It is important to note that in political science, the main points of argument refer to the particular study of what individuals get, the time they are to get it and the process to be followed in getting it. This has led to many questions about how the government carries out its governance process. For instance, why does it have different tax regimes for different people and firms? Why some benefits are made available to certain groups of people and not others among others. Most of the answers to these questions in the American example depend on the political and socioeconomic processes and the work of interest groups The works of interest groups cannot be underestimated in any country; in the United States, these groups are important channels through which people express their ideas and make their views known to people they elected in governance. Citizens can always channel their views and concerns to interest groups that articulate their concerns to various arms of the government and other public institutions (Maisel 25). In the United States, interest groups find fertile grounds to advance their interests through the informal traditions and the formal structures existing in the country (Hays para 5). It is important to note that these groups find their great source of influence from the fact that political parties in the US are thought to have some weaknesses as far as tackling the interests of people in the country is concerned. Another important feature of the American political system that encourages the functioning of interest groups relates to the way political power is decentralized to various localities and states. This is known as federalism, and plays a big role in the way citizen associations begin; mostly at the local level and the state and later coming together to make strong influential groups at the national level Interest groups made up of business people and corporate groups agree that they are critical to

The Iron Lady Movie Analysis

The Iron Lady Movie Analysis In this paper, the writer is going to analyze a character named Margareth Thatcher in The Iron Lady movie. The Iron Lady movie is a biopic film which tells the journey of Margaret Thatchers life. Margaret Thatcher is a woman politician who has strong influence in the world. She was successful in trace the history as the first woman Prime Minister in England whom occupied that position for more than one decade. This movie shows many fluctuations in politic, economy, and social field in the arrangement of the government and society which happened in that time. Thus, it can be said that movie, one example of popular culture, is actually a cultural product which represents the societys beliefs, values, and norms. (Nachbar Lause, 1992). Williams (2010) says that there are some examples of popular culture which give a huge effect and become popular in over the world such as fashion, television, music, and movie. It can affect both positively or negatively. The writer choose Margareth Thatcher as the object of the writers study because the writer wants to reveal that in the past time even in recent days women are oppressed in a political field, they have not been given chances to show their ability to lead the society. However, Margareth Thatcher shows her ability to carry out the Britains government. Margareth Thatcher was born on October 13, 1925, in Grantham, England. She is the daughter of a local businessman who was introduced to conservative politics by her father, a member of the towns council. When she was in university, she served as a president of the Conservative Association. Two years after she graduated from her college, she accepted to work for public office. She ran as the conservative candidate for a Dart ford parliamentary seat in the 1950 elections. She was elected to be a leader of the Conservative Party in 1975. She served as the prime minister of England from 1979 to 1990. As a prime minister, she battled the countrys recession by initially raising interest rates to control inflation. She can run the country quite well marked with some progression that has been occurred in that time. Moreover, she shows her valor when she accepted to be the first female Prime Minister in England by a lot of contradiction come from the government and the society. Besides, she i s an inspiring leader for the writer. She exemplifies how a woman leader in reality ought to behave. The writer will discuss this character using the perspectives of women stereotype, oppression, and movement in accordance to Marxist feminism theory. The theory separates men and womens power in social and economic field. It also talks about power inequality between men and women in a society. From the film, Margareth Thatcher shows her desire to have the same right, chance, and position in the society where in that time women were usually been oppressed by the men. Therefore, the writer chooses to use this theory. Having considered the above facts, therefore the writer proposes a study entitled Feminism Analysis in Phyllida Lloyd (2011) Iron Lady Movie: A Study of Women Stereotype, Oppression, and Movement. Field of the Study This study belongs to both Literature and Film Studies. Scope of the Study This study will put limitations on what is going to be analyzed as follows: The writer will analyze the feminism side of a character in The Iron Lady movie, Margareth Thatcher, using Marxist feminism theory. The writer will analyze the cinematographic visualization in the film which confirms women stereotype, oppression, and movement towards the character. Problem Formulation / Research Questions This research aims to answer the following question: What are women stereotype, oppression, and movement which are defined in the film? What are the perspectives of women stereotype, oppression, and movement according to Marxist feminism theory? How does the cinematographic visualization in the film confirm women stereotype, oppression, and movement from the perspective of Marxist feminism? Objectives of the Study This research is conducted to achieve this objective: To reveal the women stereotype, oppression, and movement in the film. To define the perspective of women stereotype, oppression, and movement according to Marxist feminism theory. To show the cinematographic visualization in the film which confirms women stereotype, oppression, and movement from the perspective of Marxist feminism. Significance of the Study The writer conducts this research to inform the readers about what was going on in the past time toward women in England who were been oppressed by the men. Moreover, the writer also wants to give her assumptions and criticism concerning to the gender stereotype which happens in the society nowadays. Definitions of Terms To prevent misunderstandings towards this study, the writer will give some definition of terms which are related to this study. Film: Film is another word that means different things in different contexts: roll film, stock, a film, to film. We were all exposed to some kind of film before we saw our first example of classic moviemaking. It may have been something we saw on television: a cartoon, a Three Stooges short, a Lassie rerun. Or perhaps it was an educational film we saw in school or a theatrical film (a film intended to be shown in movie theaters). (Anatomy of Film, Bernard Dick, 1978, pp.1-2) Marxist feminism: Marxist feminism is organized around the basic conflicts between capitalism versus patriarchy and class versus gender oppression. Marxist feminism combines the study of class with the analysis of gender. (Feminist Theory and Literary Practice, Deborah L. Madsen, 2000, p.65) Stereotype: Stereotype is fixed ideas about individuals, groups or objects. Stereotypic thinking about sex-role related personality features is pervasive. Desirable features assign men to form a competence cluster, while womens features form a warmth-expressive cluster. (Broverman, 1972, as cited in The Dictionary of Feminist Theory, Maggie Humm, 1995, pp.277-278) Oppression: The experience of oppressed people is that the living of ones life is confined and shaped by forces and barriers which are not accidental or occasional and hence avoidable, but are sys ­tematically related to each other in such a way as to catch one between and among them and restrict or penalize motion in any direction. (Oppression and the Use of Definition, Marilyn Frye, p.3) Political movement: The activities about someone during a particular period of time or a group of people who works together to advance their shared political ideas. (Oxford Dictionaries Online) Cinematographic visualization: The essential techniques, methods, and elements people use to tell the story. (Cinematography Theory and Practice: Image Making for Cinematographers and Director, Blain Brown, 2011, p.3) Review of Literature There are some theories that can support the writers research, they are: Feminism in European Politics The difference between struggling classes and the ruling classes in Marxist teaching has clearly led each class to do social struggle. However, when we are speaking about gender roles in such a stratified society, the class struggle is simply a cause to gender stereotypes and exploitation. (Madsen, 2000) Gender stereotypes is actually a set of values of being proper and improper to be done by a woman which is functioned as a limitation These values often create an unfriendly environment or even such condition for women to take part in legal and social functions. Furthermore, it supports a condition that womens rights are susceptible to violation. There are many kinds of stereotypes and several reasons of stereotypes. According to Cook Cusack (2010, pp.25-28), there are three kinds of stereotypes, they are sex stereotypes, sexual stereotypes, and sex role stereotypes. Sex stereotypes, are supposedly based on the physical or biological differences. Sexual stereotypes are those based on the perceived characteristics that play a role in sexuality, including, for example, sexual initiation, intimacy, possession, and objectification while sex role stereotypes describes a normative or statistical view regarding appropriate roles or behavior for men and women. Josephson (2005) in her book Gender and American Politics: Women, Men, and the Political Process: Tolleson-Rinehart explains the examples of discrimination among women and men government workers in western legal system. She says that among others, women usually suffer in terms of peoples trust, media coverage, and self-inconfidence from their male counterparts. Based on Gelbs theory of feminism and politics: a comparative perspective (1989), there are two kinds of feminist movement in power-seizing political fields, they are the reformists and radicals. Both of them move based on their own ideology of how women should be participating in such conditions. According to Jonasdottir (1994), oppression based on gender stratification is similar to Marxist class division where the gender woman has been named as the second gender. Thus it makes women are vulnerable to discriminate based on what Marxism defines as materialistic and economic value. The conceptual tools of cinematography Blain Brown (2011, p.3) in his book Cinematography Theory and Practice: Image Making for Cinematographers and Director says that the tools of cinematography and filmmaking actually discuss the essential techniques, methods, and elements that we can use to tell the story. Some elements in cinematography visualization which can be used to support this study are camera angles, shot sizes, and techniques of framing. According to Bernard Dick, a shot is simply what is recorded by a single operation of the camera. He also states that it can also be defined in terms of distance. (1998, pp.36-37). In other words, shot is a matter of subjects size or amount in the frame. It embodies five types; they are close up (CU), extreme close up (ECU), long shot (LS), extreme long shot (ELS), and medium shot (MS). He also says that shots are also defined by the position of the camera in relation to the subject or what do we known as angle. It is determined by where the camera is placed. There are four types of angle; they are birds eye view, high-angle (h/a), low-angle (l/a), and oblique-angle. In framing techniques, there is a rule called rule of thirds. Rule of thirds is a guideline which applies to the process of composing visual images such as paintings, photographs, and designs. It proposes that an image should be imagined as divided into nine equal parts by two equally-spaced horizontal lines and two equally-spaced vertical lines, and that important compositional elements should be placed along these lines or their intersections. When we are photographing or filming people, it is common to line the body up with a vertical line, and having the persons eyes in line with a horizontal one. (2012, Rule of Thirds,  ¶.1). Method of Data Collection Analysis Method of Data Collection The writer uses film as the instrument of this study, documentary research as the technique to conduct this research and qualitative approach to analyze the object. The writer chooses such technique and approach because the writer wants to analyze the object in depth. Method of Data Analysis Thus far, the writer has done watching the movie and collecting the data. The writer has used library and internet resource to assist completing this research.

Masters of the Universe

Consolidation of Variable Interest Entities A Roadmap to Applying the Variable Interest Entities Consolidation Model March 2010 FASB material, copyright  © by the Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116, is reproduced with permission. This publication is provided as an information service by the Accounting Standards and Communications Group of Deloitte & Touche LLP. It does not address all possible fact patterns and the guidance is subject to change.Deloitte & Touche LLP is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte & Touche LLP shall not be responsible for any loss sustained by any person who relies on this publication.As used in this document, â€Å"Deloitte† means Deloitte & Touche LLP, a subsidiary of Deloitte LLP. Please see www. deloitte. com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. March 2010 Contents Acknowledgments Introduction Section 1 — Overview, Background, and Scope 1. 01 1. 02 Determining Which Consolidation Model to Apply Consideration of Substantive Terms, Transactions, and Arrangements Substantive Terms and Arrangements Scope and Scope Exceptions Overall Scope Considerations 1. 3 1. 04 1. 05 1. 06 1. 07 1. 08 1. 09 1. 10 1. 11 Application of the VIE Model in ASC 810-10 to Non-SPEs Qualification of a SPE as a Voting Interest Entity Application of the VIE Model in ASC 810-10 to Multitiered Legal Entity Structures Application of the VIE Model in ASC 810-10 to a Single Entity Held by a Holding Company Elimination of the QSPE Scop e Exception Determining Whether Employee Benefit Plans Should Apply the VIE Model in ASC 810-10 to Their Investments Scope Exception for Certain Investment CompaniesDefinition of Governmental Organization Determining Whether a Governmental Organization Was Used to Circumvent the Provisions of the VIE Model in ASC 810-10 Scope Exception for Not-for-Profit Organizations Scope Exception for Not-for-Profit Organizations: Circumvention of the VIE Model in ASC 810-10 Accounting Guidance for NFPs as a Result of the VIE Model in ASC 810-10 Determining Whether Entities That Present Their Financial Statements Similarly to a NFP Can Qualify for the Not-for-Profit Scope Exception Retention of a For-Profit Reporting Entity’s Accounting Policies in the Consolidated Financial Statements of a Not-for-Profit Reporting Entity Scope Exception for Separate Accounts of Life Insurance Entities Meaning of the Term â€Å"Exhaustive Effort† Application of Exhaustive-Efforts Scope Exception to an Inactive Entity Created Before December 31, 2003 Definition of a Business Under ASC 810-10-15-17(d) Effect of the Change in the Definition of a Business on the Business Scope Exception 1 2 5 6 8 8 9 10 10 10 11 12 13 14 14 14 15 15 15 16 17 17 17 18 18 18 19 19 19 20 20 21 21 21 Scope Exception for Employee Benefit Plans Scope Exception Related to Investments Accounted for at Fair Value Scope Exception for Governmental Organizations Scope Exception for Not-for-Profit Organizations 1. 12 1. 13 1. 14 1. 15 1. 16 Scope Exception Related to Separate Accounts of Life Insurance Entities 1. 17 1. 18 1. 19 1. 20 1. 21 Exhaustive-Efforts Scope Exception Business Scope Exception i 1. 22 1. 23 1. 24 1. 25 1. 26 1. 27 1. 28 1. 29 1. 30 1. 31 Applying the Business Scope Exception on aReporting-Entity-by-Reporting-Entity Basis Determining When a Reporting Entity Should Assess Whether It Meets the Business Scope Exception Under the VIE Model in ASC 810-10 Definition of a Joint Venture and Joint Control as Used in the VIE Model in ASC 810-10-15-17(d)(1) Determining Whether the Reporting Entity Participated Significantly in the Design or Redesign of the Legal Entity Scope Exception for Legal Entities Deemed to Be a Business — Determining Whether Substantially All of the Activities Either Involve or Are Conducted on Behalf of the Reporting Entity Scope Exception for an Entity Deemed to Be a Business — Determining Whether Financing Is Subordinated Additional Financial Support — Put and Call Options Business Scope Exception — Determining Whether More Than Half the Total of Equity, Debt, and Other Subordinated Financial Support Has Been Provided Lessee’s Determination of Whether a Capital Lease With an Entity Should Be Assessed Under the VIE Model in ASC 810-10 Consideration of Leasing Activities in Which the Legal Entity Is the Lessor 22 22 24 25 25 27 28 29 30 30 Section 2 — Determination of Whether the Reporting Entity Holds a Variab le Interest Identifying a Variable Interest 2. 01 2. 02 2. 03 2. 04 2. 05 2. 06 2. 07 2. 08 2. 09 2. 10 2. 11 2. 12 2. 13 2. 14 2. 15 2. 16 2. 17 2. 18 2. 19 2. 20 2. 21 2. 22 2. 23 2. 24 2. 5 Determining Whether a Holding Is a Variable Interest Identifying Whether a Reporting Entity Holds a Variable Interest Requiring Analysis Under the VIE Model in ASC 810-10 Determining When a Lease Represents a Variable Interest — Potential VIE Is a Lessor Determining When a Lease Represents a Variable Interest — Potential VIE Is a Lessee Determining Variable Interests Under the VIE Model in ASC 810-10 in a Synthetic CDO Structure When Decision-Maker Fees Are Not Treated as a Variable Interest Determining Variable Interests Under the VIE Model in ASC 810-10 in a Synthetic CDO Structure When Decision-Maker Fees Are Treated as a Variable Interest Netting of Instruments Other Than Equity Applying the VIE Model in ASC 810-10 to Trust Preferred Security Arrangements and Similar Structur es Implicit Variable Interests and â€Å"Activities Around the Entity† — Illustration Implicit Variable Interests — Call and Put Options Implicit Variable Interests — Total Return Swap Implicit Variable Interests —Back-to-Back Asset Guarantee Determining When an Implicit Guarantee (Variable Interest) Exists in a Related-Party Transaction Implicit Variable Interests — Waiving of a Management Fee Overview of the Guidance in ASC 810-10-25-21 Through 25-36 Applying the Guidance in ASC 810-10-25-21 Through 25-36 to Purchase and Supply Arrangements Applying ASC 810-10-25-21 Through 25-36 to PPAs, Tolling Agreements, and Similar Arrangements Off-Market Supply Agreements Determining Whether a Variable Interest Is Subordinated Financial Support Analyzing a MMF for Consolidation How to Determine Whether an Embedded Derivative Is Clearly and Closely Related Economically to Its Asset or Liability Host Applying the Guidance in ASC 810-10-25-35 and 25-36 Meaning of the Term â€Å"Derivative Instrument† in ASC 810-10-25-35 and 25-36 Meaning of the Term â€Å"Market-Observable Variable† in ASC 810-10-25-35 Meaning of the Term â€Å"Essentially All† in ASC 810-10-25-36 32 32 32 35 36 37 37 39 39 40 43 43 46 46 47 47 51 51 53 55 56 58 59 60 62 63 65 66 66 Implicit Variable Interests The By-Design Approach to Determining Variability ii Section 3 — Determination of Whether an Entity Is a VIE Determination of Whether Equity Investment at Risk Is Sufficient Under ASC 810-10-15-14(a) 3. 01 3. 2 3. 03 3. 04 3. 05 3. 06 3. 07 3. 08 3. 09 3. 10 3. 11 3. 12 3. 13 Determination of Equity Investment at Risk When the Investor’s Initial Accounting Basis of Its Equity Differs From Fair Value Including Mezzanine Equity Instruments in Total Equity Investment at Risk Determination of Whether a Personal Guarantee Provided by an Equity Holder Represents Equity Investment at Risk Determining Whether an Instrument With a R isks-and-Rewards Profile Similar to That of an Equity Investment Qualifies as Equity Impact of ASC 810-10-15-14(a) on the Determination of Total Equity Investment at Risk When the Investee Is a Foreign Entity Non-At-Risk EquityInvestment as a Variable Interest Definition of â€Å"Profits and Losses,† as Used in ASC 810-10-15-14(a)(1) Including Fixed-Rate, Nonparticipating Preferred Stock in the Total Equity Investment at Risk Determining Whether an Equity Interest Participates Significantly in the Profits and Losses of an Entity Impact of Put Options, Call Options, and Total Return Swaps on Equity Investment at Risk Impact of Contracts and Instruments That Protect an Equity Investor on Equity Investment at Risk Qualification of Equity Investments Issued in Exchange for Promises to Perform Services as Equity Investment at Risk Determining Whether Fees Received by an Equity Investor for Services Performed at Inception or in the Future Reduce Equity Investment at Risk Determinin g Whether Funds Borrowed by a Reporting Entity Qualify as Equity Investment at Risk Determining Whether a Quantitative Assessment of Equity Investment at Risk Is Necessary Qualitative Versus Quantitative Analysis of Whether an Entity Is a VIE Quantitative Expected-Loss Calculation — After Adoption of ASU 2009-17 Consideration of Subordinated Debt in a Qualitative Assessment of Sufficiency of Equity at Risk 68 69 70 70 70 71 71 71 72 72 73 73 74 76 77 77 78 78 78 79 80 81 81 82 83 84 84 85 86 87 87 88 88 90 90 91 92 92 93 94 94 95Equity Investments That Participate in Profits and Losses Equity Investments Provided Directly or Indirectly by the Entity Equity Investments Financed by the Entity 3. 14 3. 15 3. 16 3. 17 3. 18 Sufficiency of Equity Investment at Risk Determining Whether, as a Group, the Holders of the Equity Investment at Risk Lack Any of the Characteristics in ASC 810-10-15-14(b) 3. 19 3. 20 3. 21 3. 22 3. 23 3. 24 3. 25 3. 26 Characteristics in ASC 810-10-15-14(b) Held Within the Group of At-Risk Equity Investors Meaning of the Phrase â€Å"As a Group† in ASC 810-10-15-14(b) Impact of ASC 810-10-15-14(b) on Determining Characteristics of Control or Lack of Control by the Group of Holders of Equity Investment t Risk Minimum Amount of Equity Held By an Investment Manager or GP Ability of Holders of Equity Investment at Risk to Remove a Decision Maker Decision-Making Rights Granted to an Equity Holder Separately From Its Equity Investment at Risk Nonsubstantive Equity Investment of a GP Determining Whether a GP Interest Should Be Aggregated With an LP (or Other) Interest in the Evaluation of a Legal Entity Under ASC 810-10-15-14 Meaning of â€Å"Insignificant† in the Analysis of Fees Paid to a Decision Maker or Service Provider Meaning of the Term â€Å"Same Level of Seniority† Whether a Fee Paid to a Decision Maker or Service Provider That Represents a Variable Interest Could Potentially Not Be Significant to a VIE Determi ning Whether a Decision Maker or Service Provider Must Evaluate ASC 810-10-25-38A If the Fees Paid to the Decision Maker or Service Provider Do Not Represent a Variable Interest Reassessment of Fees Paid to a Decision Maker or Service Provider Determining Whether a Reporting Entity Lacks the Obligation to Absorb Expected Losses of the Entity Use of a Qualitative Approach to Determine Whether a Reporting Entity Has the Obligation to Absorb Expected Losses iii Analysis of Fees Paid to a Decision Maker or Service Provider 3. 27 3. 28 3. 29 3. 30 3. 31 3. 32 3. 33 Obligation to Absorb the Expected Losses of the Legal Entity 3. 34 3. 35 3. 36Determining Whether a Put Option on an Equity Interest Causes the Holders of the Equity Investment at Risk to Lack the Obligation to Absorb the Expected Losses of the Entity Determining Whether a Put Option on a Potential VIE’s Assets Causes the Holders of the Equity Investment at Risk to Lack the Obligation to Absorb the Expected Losses of th e Potential VIE Determining the Effect of Other Arrangements on the Ability of the Equity Group to Absorb Expected Losses or Receive Residual Returns Determining Whether an Investor Has the Right to Receive the Expected Residual Returns of a Legal Entity and Whether the Investor’s Return Is Capped Impact of an Outstanding Equity Call Option on Whether a Return Is Capped Impact of a Call Option on n Entity’s Assets on Whether a Return Is Capped Application of the VIE Test Under ASC 810-10-15-14(c) Considering a Reporting Entity’s Obligations to Absorb Expected Losses and Rights to Receive Expected Residual Returns Other Than Those Provided Through Equity Interests When Applying ASC 810-10-15-14(c) Anticipated Changes in the Assessment of Whether an Entity Is a VIE Future Sources of Financing to Include in a Potential VIE’s Expected Cash Flows Guidance on Reconsideration of Whether an Entity Is a VIE Valuation of Equity Investment at Risk When a Reconsidera tion Event Occurs Isolating the Impact of a Change in the Entity’s Governing Documents or Contractual Arrangements and the Impact of Undertaking Additional Activities or Acquiring Additional Assets Entering Into Bankruptcy Emerging From Bankruptcy Determining Whether a Development-Stage Entity Is a Business Development Stage Entities — Assessing the Sufficiency of Equity Investment at Risk 96 96 96 98 98 99 99 99 100 101 102 102 103 104 104 107 107 108 108 109 109 109Right to Receive the Expected Residual Returns of the Legal Entity 3. 37 3. 38 3. 39 3. 40 3. 41 Determining When the Equity Investors as a Group Are Considered to Lack the Characteristics in ASC 810-10-15-14(b)(1) Initial Determination of Whether an Entity Is a VIE 3. 42 3. 43 3. 44 3. 45 3. 46 3. 47 3. 48 3. 49 3. 50 Reconsideration of Whether the Entity Is a VIE Development-Stage Entities Section 4 — Expected Variability and the Calculation of Expected Losses and Expected Residual Returns 4. 01 4 . 02 4. 03 4. 04 4. 05 4. 06 4. 07 4. 08 4. 09 4. 10 4. 11 4. 12 4. 13 4. 14 4. 15 4. 16 Definitions of Expected Losses and Expected Residual Returns The Meaning of â€Å"Net Assets† Under the VIE Model in ASC 10-10 Purpose of Calculating the Expected Losses and Expected Residual Returns of the Entity How to Determine the Expected Losses and Expected Residual Returns of the Entity How to Determine the Expected Losses and Expected Residual Returns of the Entity — Example Use of the Indirect Method to Calculate Estimated Cash Flows Noncash Receipts or Distributions in the Determination of an Entity’s Estimated Cash Flow Scenarios Inclusion of Low-Income Housing or Similar Tax Credits in a Calculation of Expected Losses and Expected Residual Returns Effect of Options on Specific Assets in the Determination of the Entity’s Estimated Cash Flows Developing Estimated Cash Flow Scenarios and Assigning Probabilities for Expected Loss and Expected Residual Return C alculations Discount Rate to Use in the Calculation of Expected Losses and Expected Residual Returns Cash Flow and Fair Value Approaches to Calculating Expected Losses and Expected Residual Returns Appropriateness of Using Either the Cash Flow Approach or Fair Value Approach to Calculate Expected Losses and Expected Residual Returns Determining Whether Decision-Maker and Service-Provider Fees Are Included in Expected Losses and Expected Residual Returns Whether ASC 820-10 Affects an Expected Losses/Residual Returns Calculation Allocation Methods That May Be Used to Determine Whether Fees Paid to Decision Makers or Service Providers Are Variable Interests iv 111 111 112 113 113 116 121 123 124 124 125 127 128 128 129 129 130 Section 5 — Interests in Specified Assets of the VIE and Silo Provisions 5. 01 5. 02 5. 03 5. 04 5. 05 5. 06 5. 07 5. 08 5. 9 Accounting for Interests in Specified Assets and Silos Consideration of Interests in Specified Assets Guarantees That Represent a Variable Interest in the Entity Versus a Variable Interest in Specified Assets of the Entity Considering a Party’s Other Interests in the Analysis of a Variable Interest in Specified Assets of an Entity Considering a Related Party’s Interest in the Analysis of a Variable Interest in Specified Assets of an Entity Determining Whether a Silo Exists Determining Whether a Host Entity Is a VIE When a Silo Exists Determining Whether the Silo Is a VIE If the Host Entity Is a VIE Determining the Primary Beneficiary of the Host Entity and Silo 133 133 135 136 136 137 138 139 140 141 Section 6 — Determination of the Primary Beneficiary 6. 01 6. 02 6. 03 6. 04 6. 05 6. 06 6. 07 6. 08 6. 09 6. 10 6. 11 6. 12 6. 13 6. 14 6. 15 6. 16 6. 17 6. 18 6. 19 6. 20 6. 21 6. 22 6. 23 6. 24 6. 25 6. 26 6. 27 6. 28 6. 9 How a Reporting Entity Applies the VIE Model in ASC 810-10 When It Appears Not to Be the Primary Beneficiary Determining Whether More Than One Reporting Entity Can Consol idate a VIE Risks to Which an Entity Is Designed to Be Exposed Risks and Related Activities Assessing Power to Direct When Decisions Are Made by a Board of Directors and a Manager Consideration of All Risks in the Determination of the Power to Direct Activities of the VIE Evaluating Power to Direct the Most Significant Activities of the VIE in Scenarios Involving a PPA Determination of a Primary Beneficiary for Every VIE Evaluating the Characteristic in ASC 810-10-25-38A(b) Reconsideration of the Primary Beneficiary of a VIE The Effect of Contingencies on Determining the Primary Beneficiary Consideration of Forward Starting Rights in the Primary Beneficiary Analysis Determination of Whether Kickout Rights are Substantive Consideration of a Board of Directors as a Single Party in the Assessment of Kickout Rights Withdrawal and Liquidation Rights Evaluation of Shared Power Versus Multiple Unrelated Parties Performing Different Significant Activities Shared Power Within a Related-Party Group VIEs With No Ongoing Activities That Significantly Affect Their Economic Performance Factors to Consider in the Determination of Whether a Relationship Represents a De Facto Agency Aggregation of Variable Interests When the Reporting Entity Does Not Hold a Variable Interest Directly in the Entity De Facto Agency Relationship When Only Part of an Interest Is Received as a Loan or Contribution From Another Reporting Entity Related-Party Determination — Interests Received as a Loan Considering Whether Restrictions on a Reporting Entity’s Ability to Sell, Transfer, or Encumber Its Interests in a VIE Constitute Constraint The Effect of a Put Option on a De Facto Agency Relationship Consideration of De Facto Agent Requirements in the Determination of the Primary Beneficiary in a Joint Venture Arrangement Determining Which Party in a Related-Party Group Is Most Closely Associated With a VIE Determining the Primary Beneficiary in a Related-Party Group When Members of th e Related-Party Group Are Under Common Control Consideration of the Factors in ASC 810-20 in the Determination of Which Related Party Is Most Closely Associated Application of ASC 810-10-25-38A and ASC 810-10-25-44 When a Fee Paid to an Asset Manager Represents a Variable Interest and the Asset Manager Is Part of a Related-Party Group 42 143 143 144 144 145 147 148 149 149 151 153 155 156 156 157 157 158 159 160 160 162 162 163 164 165 166 166 169 169 170 Related-Party Considerations v Section 7 — Initial Measurement and Subsequent Accounting Initial Measurement 7. 01 7. 02 7. 03 Balance Sheet Classification of Parent’s Interest — Primary Beneficiary and VIE Under Common Control Qualification of an Entity as a Business for Recording Goodwill Upon Consolidation of a VIE Accounting After Initial Measurement — Intercompany Eliminations 173 173 173 174 175 175 Accounting After Initial Measurement Section 8 — Presentation and Disclosures Presentation 8. 01 8. 02 8. 03 8. 04 8. 5 Application of the Presentation Requirements of ASC 810-10-45-25 to a Consolidated VIE Separate Presentation of Certain Assets and Liabilities of Consolidated VIEs Optional Separate Presentation of Certain Assets and Liabilities of Consolidated VIEs Disclosures About Securitizations Under ASC 860 Versus Disclosures About Securitizations Under the VIE Model in ASC 810-10 Definition of Maximum Exposure to Loss for Disclosure Purposes 177 177 177 178 179 179 181 182 Disclosures Section 9 — Transition 9. 01 9. 02 Whether a Reporting Entity Can Elect the FVO for a VIE Upon Adopting ASU 2009-17 Determining VIE and Primary-Beneficiary Status Upon Transition to ASU 2009-17 183 186 186 Appendix A — Implementation Guidance Appendix B — Glossary of Terms and Abbreviations Used in the VIE Model in ASC 810-10 Glossary of Terms Abbreviations 189 205 205 206 Appendix C — Key Differences Between U. S. GAAP and IFRSs — Consolidated Financ ial Statements Appendix D — Reference Guide Appendix E — Glossary of Standards 208 212 214 vi AcknowledgmentsAshley Carpenter, Rob Comerford, Jon Howard, Jeff Nickell, Randall Sogoloff, Joe Ucuzoglu, and Bob Uhl provided the thought leadership necessary to formulate our views on the application of the key principles of Statement 167. James Barker worked with our Energy & Resources practice to develop our views on the application of Statement 167 to power purchase arrangements. Jim Schnurr continues to work with our Investment Management practice to provide input on Statement 167 and the ongoing joint consolidations project. Xihao Hu and Sherif Sakr provided invaluable insight and perspective from our Financial Accounting and Reporting Services group.Joe Renouf, Michael Lorenzo, Lynne Campbell, Yvonne Donnachie, and Joan Meyers delivered the first class production effort that we have come to rely on for all of Deloitte’s publications. Courtney Sachtleben worked t irelessly to ensure this Roadmap was of the highest quality. Her dedication and commitment got this publication to the finish line. Others deserving of mention and appreciation are Robin Kramer, Shan Nemeth, Adrian Schwartz, Kirsten Aunapu, Angela Bacarella, Chris Rogers, Trevor Farber, Catherine Smith, Madhu Gopinath, Shane Burak, Joseph Berry, Kirby Rattenbury, Will Estilo, Chris Toppin, and Thalia Smith. 1 Introduction March 2010 To the clients, friends, and people of Deloitte: Welcome back to the land of variable interest entities (VIEs).It’s been two-and-a-half years since we last updated our Roadmap on consolidation of VIEs, and the consolidations terrain has changed significantly in that time. The most noteworthy changes are (1) the issuance of Statement 167, (2) the release of the FASB Accounting Standards Codification (the â€Å"Codification†), and (3) the continued work of the FASB and IASB on a joint consolidations project. Statement 167 — Whatâ€℠¢s All the Fuss About? In June 2009, the FASB issued Statement 167, which amends the consolidation guidance applicable to VIEs. The Statement 167 amendments are effective as of the first annual reporting period that begins after November 15, 2009, and for interim periods within that first annual reporting period.Statement 167 replaces Interpretation 46(R)’s risks-and-rewards-based quantitative approach to consolidation with a more qualitative approach that requires a reporting entity to have some economic exposure to a VIE along with â€Å"the power to direct the activities that most significantly impact the economic performance of the entity. † The FASB also reminded its constituents that only substantive terms, transactions, and arrangements should affect the accounting conclusions under Statement 167; the SEC has reiterated this principle in numerous public speeches. It’s not surprising that many initially concentrated on understanding how Statement 167 would affect qualifying special-purpose entities (QSPEs) and other structured finance entities because that seemed to be the FASB’s focus, particularly given that six of the nine implementation examples in Statement 167 address structured finance entities.However, the initial adoption of Statement 167 has proved time-consuming because it does not just apply to structured finance entities or entities historically considered VIEs under Interpretation 46(R). In addition, even if a reporting entity determines that it does not need to consolidate a VIE under Statement 167, it must provide extensive disclosures for any VIEs in which it holds a variable interest. In addition to the overall change in the Interpretation 46(R) consolidation model, Statement 167 contains the following significant provisions and amendments: †¢ †¢ ThescopeexemptionforQSPEsisremovedfromInterpretation46(R). Asaresult,transferors,sponsors, and investors in QSPEs need to consider the consolidation and di sclosure provisions in Statement 167.Kickoutrightsandparticipatingrightsareignoredin(1)thedeterminationofwhetheranentityisaVIE and (2) the identification of the VIE’s primary beneficiary, unless the rights are held by a single reporting entity. AreportingentitymustcontinuallyreconsiderwhichvariableinterestholderistheVIE’sprimary beneficiary. Areportingentitymustreconsideranentity’sVIEstatusiftheequityinterestholderslosethepowerfrom the voting rights of those investments to direct the entity’s most significant activities. Anexemptiontothedefactoagentrequirementsexistswhenmutualtransferrestrictionsarebasedon terms mutually agreed to by willing, independent parties. Areportingentitymustmeetsixconditionstodeterminethatfeespaidtoadecisionmakerorservice provider do not represent a variable interest.The FASB believes that fees paid to a reporting entity that acts solely as a fiduciary or agent should typically not represent a variable interest because those fees would typically meet these six conditions. 2 †¢ †¢ †¢ †¢ †¢ Aprimarybeneficiarymustpresentseparately,onthefaceofthebalancesheet,(1)assetsofconsolidated VIEs that can only be used to settle obligations of those VIEs and (2) liabilities of consolidated VIEs for which creditors do not have recourse to the general credit of the primary beneficiary. Powerisonlyconsideredshared(andnopartyconsolidates)if(1)twoormoreunrelatedpartiestogether have the power to direct the VIE’s most significant activities and (2) decisions about those activities require the consent of each of the parties sharing power. †¢To address the new consolidations guidance under Statement 167, this edition of the Roadmap (1) includes over 30 new Q&As and (2) updates our existing Interpretation 46(R) Q&As. The Codification — Do You Have All the New Topics, Subtopics, Sections, Subsections, and Paragraphs Memorized? In July 2009, the Codification became the single source of aut horitative nongovernmental U. S. GAAP. The Codification’s hierarchy is topic, subtopic, section, and paragraph, in that order, each with a numerical designation (e. g. , ASC 810-10-25-37, which was formerly paragraph 6 of Interpretation 46(R)). ASU 2009-17 incorporated Statement 167’s amendments to the VIE model into the Codification. The beginning of each section of this Roadmap contains quotes from the appropriate Codification paragraphs.In addition, for those of you still trying to find your way through the Codification, we thought it would be helpful for each Codification paragraph to be followed by a reference to the corresponding pre-Codification paragraph from Interpretation 46(R), as amended by Statement 167. Although ASC 810-10-55-37 (paragraph B22 of Interpretation 46(R)1) might not roll off your tongue like â€Å"B22 of FIN 46(R)† used to, the Codification is here to stay. However, we suspect that just as there are probably a few accountants who are c linging to their last version of the FASB’s Original Pronouncements (we know you are out there! ), there are some that might need a little help finding the new VIE guidance in the Codification.Accordingly, Appendix D of this Roadmap includes a guide that cross-references the paragraphs from ASC 810-10 to the guidance in Interpretation 46(R), as amended by Statement 167. The reference guide also lists the accounting topic and section from the Roadmap that these paragraph references apply to. (We thought a few hints and a little â€Å"cheat sheet† among friends might be helpful while we all adjust to the new layout of the Codification. ) No More Big Changes Expected Anytime Soon — Right? Well — not really. Did we mention the joint consolidations project that the FASB and the IASB are working on? The IASB and FASB are jointly developing guidance for consolidation of all entities, including entities currently considered VIEs.Although Statement 167 was not dev eloped as part of the joint project, the IASB staff closely followed the FASB’s work on Statement 167. The boards’ goal is to have one consolidation model whose principles are similar to those in Statement 167 and that would apply to all entities. In December 2008, the IASB issued Exposure Draft 10 (ED 10), Consolidated Financial Statements. Although the boards believe that the objectives for assessing control of structures under Statement 167 and ED 10 are fundamentally consistent, they also acknowledged that the guidance in ED 10 can potentially result in different consolidation conclusions — particularly for certain investment funds.The boards are continuing to jointly deliberate several critical issues, including the evaluation of principal and agent relationships, the concept of effective control (e. g. , the ability to control a voting interest entity when a reporting entity holds fewer than half of the voting rights), related parties, disclosures, and pre sentation requirements. The boards have stated their goal to issue an exposure draft during the second quarter of 2010 and a final standard before the end of 2010. We will continue to keep you updated on these developments through our Heads Up newsletters as well as through our Dbriefs webcast series. 2 For a discussion of the current differences between the consolidation models under IFRSs and U. S. GAAP, see Appendix C of this Roadmap. 1 2You see – that’s helpful – isn’t it? If you wish to receive Heads Up and other accounting publications issued by Deloitte’s Accounting Standards and Communications Group, please register at www. deloitte. com/us/subscriptions. Join Dbriefs to receive notifications about future webcasts at www. deloitte. com/us/dbriefs. 3 What’s This I Hear About a Deferral of Statement 167? Can I Get One Too? In February 2010, the FASB issued ASU 2010-10, which amends certain provisions of the VIE model in ASC 810-10. The ASU defers the effective date of Statement 167 for a reporting entity’s interest in certain entities and certain money market mutual funds.It also addresses concerns that the joint consolidation model under development by the FASB and IASB may result in a different consolidation conclusion for asset managers and that an asset manager consolidating certain funds would not necessarily provide useful information to investors. In addition, the ASU amends certain provisions of ASC 810-10-55-37 (paragraph B22 of Interpretation 46(R), as amended by Statement 167) to change how a decision maker or service provider determines whether its fee is a variable interest. This Roadmap reflects the changes to ASC 810-10-55-37. The ASU will defer the application of Statement 167 for a reporting entity’s interest in an entity (1) that has all the attributes of an investment company or (2) for which it is industry practice to apply measurement principles for financial reporting purposes that are consistent with those followed by investment companies.The deferral does not apply in situations in which a reporting entity has the explicit or implicit obligation to fund losses of an entity that could potentially be significant to the entity. The deferral also does not apply to interests in securitization entities, asset-backed financing entities, or entities formerly considered QSPEs. In addition, the deferral applies to a reporting entity’s interest in an entity that is required to comply with or operate in accordance with requirements similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. These entities will be subject to the deferral even if the money market fund manager has an xplicit or implicit obligation to fund losses of the entity. For reporting entities that meet the deferral conditions, the guidance on VIEs in ASC 810-10 (before the amendments in ASU 2009-17 and the amendments to 810-10-55-37 in ASU 2010- 10) would be used to determine whether (1) the legal entity is a VIE, (2) the reporting entity has a variable interest in a VIE, and (3) the reporting entity is the primary beneficiary of a VIE. However, all reporting entities must provide the disclosures in ASC 81010, as amended by ASU 2009-17, for all VIEs in which they hold a variable interest or for which they are the primary beneficiary — regardless of whether the entity qualifies for the deferral. Q&A 1. 1 of this Roadmap includes a decision tree to help you understand how the deferral may affect which consolidation model you will need to apply. In addition, see our January 27, 2010, Heads Up for information about the ASU’s other significant provisions. The Road Forward We understand that Statement 167 (like Interpretation 46(R) before it) can be a difficult standard to apply — particularly when you are new to its provisions. We believe this Roadmap can help you find your way and can help make the complex sound a little simpler. To those new to VIE land, and to our grizzled VIE veterans, we look forward to working with you. Deloitte & Touche LLP 4 Section 1 — Overview, Background, and Scope ASC 810-10 5-8 The Variable Interest Entities Subsections clarify the application of the General Subsections to certain legal entities in which equity investors do not have sufficient equity at risk for the legal entity to finance its activities without additional subordinated financial support or, as a group, the holders of the equity investment at risk lack any one of the following three characteristics: a. b. c. The power, through voting rights or similar rights, to direct the activities of a legal entity that most significantly impact the entity’s economic performance The obligation to absorb the expected losses of the legal entity The right to receive the expected residual returns of the legal entity.Paragraph 810-10-10-1 states that consolidated financial statements are usually necessary for a fair presentation if one of the entities in the consolidated group directly or indirectly has a controlling financial interest in the other entities. Paragraph 81010-15-8 states that the usual condition for a controlling financial interest is ownership of a majority voting interest. However, application of the majority voting interest requirement in the General Subsections of this Subtopic to certain types of entities may not identify the party with a controlling financial interest because the controlling financial interest may be achieved through arrangements that do not involve voting interests. Paragraph 1] 05-8A The reporting entity with a variable interest or interests that provide the reporting entity with a controlling financial interest in a variable interest entity (VIE) will have both of the following characteristics: a. b. The power to direct the activities of a VIE that most significantly impact the VIE’s economic performance The obligation to abs orb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. [Paragraph 1A] 05-9 The Variable Interest Entities Subsections explain how to identify VIEs and how to determine when a reporting entity should include the assets, liabilities, noncontrolling interests, and results of activities of a VIE in its consolidated financial statements. Transactions involving VIEs are common.Some reporting entities have entered into arrangements using VIEs that appear to be designed to avoid reporting assets and liabilities for which they are responsible, to delay reporting losses that have already been incurred, or to report gains that are illusory. At the same time, many reporting entities have used VIEs for valid business purposes and have properly accounted for those VIEs based on guidance and accepted practice. [Paragraph E5] 05-10 Some relationships between reporting entities and VIEs ar e similar to relationships established by majority voting interests, but VIEs often are arranged without a governing board or with a governing board that has limited ability to make decisions that affect the VIE’s activities.A VIE’s activities may be limited or predetermined by the articles of incorporation, bylaws, partnership agreements, trust agreements, other establishing documents, or contractual agreements between the parties involved with the VIE. A reporting entity implicitly chooses at the time of its investment to accept the activities in which the VIE is permitted to engage. That reporting entity may not need the ability to make decisions if the activities are predetermined or limited in ways the reporting entity chooses to accept. Alternatively, the reporting entity may obtain an ability to make decisions that affect a VIE’s activities through contracts or the VIE’s governing documents. There may be other techniques for protecting a reporting entity’s interests.In any case, the reporting entity may receive benefits similar to those received from a controlling financial interest and be exposed to risks similar to those received from a controlling financial interest without holding a majority voting interest (or without holding any voting interest). [Paragraph E7] The power to direct the activities of a VIE that most significantly impact the entity’s economic performance and the reporting entity’s exposure to the entity’s losses or benefits [Paragraph 14A] are determinants of consolidation in the Variable Interest Entities Subsections. [Paragraph E7] The Variable Interest Entities Subsections also provide guidance on determining whether fees paid to a decision maker or service provider should be considered a variable interest in a VIE. 5 ASC 810-10 (continued) 5-11 VIEs often are created for a single specified purpose, for example, to facilitate securitization, leasing, hedging, research and dev elopment, reinsurance, or other transactions or arrangements. The activities may be predetermined by the documents that establish the VIEs or by contracts or other arrangements between the parties involved. However, those characteristics do not define the scope of the Variable Interest Entities Subsections because other entities may have those same characteristics. The distinction between VIEs and other entities is based on the nature and amount of the equity investment and the rights and obligations of the equity investors. Paragraph E18] 05-12 Because the equity investors in an entity other than a VIE generally absorb losses first, they can be expected to resist arrangements that give other parties the ability to significantly increase their risk or reduce their benefits. Other parties can be expected to align their interests with those of the equity investors, protect their interests contractually, or avoid any involvement with the entity. [Paragraph E19] 05-13 In contrast, eithe r a VIE does not issue voting interests (or other interests with similar rights) or the total equity investment at risk is not sufficient to permit the legal entity to finance its activities without additional subordinated financial support.If a legal entity does not issue voting or similar interests or if the equity investment is insufficient, that legal entity’s activities may be predetermined or decision-making ability is determined contractually. If the total equity investment at risk is not sufficient to permit the legal entity to finance its activities, the parties providing the necessary additional subordinated financial support most likely will not permit an equity investor to make decisions that may be counter to their interests. That means that the usual condition for establishing a controlling financial interest as a majority voting interest does not apply to VIEs. Consequently, a standard that requires ownership of voting stock is not appropriate for such entities . [Paragraph E20] 1. 01 Determining Which Consolidation Model to ApplyUnder ASC 810-10, there are two primary1 models for determining whether consolidation is appropriate: the VIE model and the voting interest model. ASU 2009-17 amends the VIE model and is effective as of the beginning of each reporting entity’s first annual reporting period that begins after November 15, 2009, and for interim periods within those reporting periods. ASU 2010-10 indefinitely defers the amendments in ASU 2009-17 for a reporting entity’s interest in certain entities and amends the guidance in paragraph 810-10-55-37 (as amended by ASU 2009-17) on determining whether a decision-maker or service-provider fee represents a variable interest. The deferral will be most applicable to interests in certain investment funds.For reporting entities that meet the deferral conditions, the guidance on VIEs in ASC 810-10 (before the amendments in ASU 2009-17 and the amendments to 810-10-55-37 in ASU 2010- 10) would be used to determine whether the legal entity is a VIE, whether the reporting entity has a variable interest in a VIE, and whether the reporting entity is the primary beneficiary of a VIE. However, all reporting entities must provide the disclosures in ASC 810-10, as amended by ASU 2009-17, for all VIEs in which they hold a variable interest or for which they are the primary beneficiary — regardless of whether the entity qualifies for the deferral. Question How should a reporting entity determine which consolidation model is appropriate under ASC 810-10? 1While ASC 810-10 primarily focuses on the voting interest model and the VIE model, it also discusses consolidation of entities controlled by contract. Although the guidance in the Consolidation of Entities Controlled by Contract subsection applies to all entities (except entities that are determined to be VIEs), the context of the guidance is physician practice management entities. 6 Answer When determining which c onsolidation model to apply, a reporting entity should consider the following flowchart: Does one of the scope exceptions in ASC 810-10-15-12 or 15-17 apply? No Does the potential VIE and the reporting entity’s interest in the potential VIE meet the deferral conditions in ASC 810-10-65-2(aa)?Yes Apply the voting interest model in ASC 810-10. Yes No Does the reporting entity have a variable interest in the potential VIE under ASC 810-10 (before the amendments by ASU 2009-17)? Yes Is the entity a VIE under ASC 81010 (before the amendments by ASU 2009-17)? Yes Determine whether the reporting entity is the primary beneficiary of the VIE under ASC 810-10 (before the amendments by ASU 2009-17). No No No Does the reporting entity have a variable interest in the potential VIE under ASC 810-10 (as amended by ASU 2009-17)? Yes No Is the entity a VIE under ASC 81010 (as amended by ASU 2009-17)? Yes Apply the voting interest model in ASC 810-10 to the entity.Determine whether the reporti ng entity is the primary beneficiary of the VIE under ASC 810-10 (as amended by ASU 2009-17)? Apply the disclosure requirements in ASC 810-10-5 (as amended by ASU 2009-17) for all VIEs in which the reporting entity holds a variable interest, regardless of whether the deferral conditions in ASC 810-10-65-2(aa) are met. If one of the scope exceptions in ASC 810-10-15-12 or 15-17 does not apply to the potential accounting parent or potential accounting subsidiary, determining whether the potential VIE and the reporting entity’s interest in the potential VIE meet the deferral conditions in ASC 810-10-65-2(aa) is the first step in the assessment of whether an entity should be consolidated.Note that this determination is performed first because the analysis of whether the reporting entity has a variable interest in the entity, the entity is a VIE, or the reporting entity is the primary beneficiary may differ depending on whether the potential VIE and the reporting entity’s i nterest in the potential VIE meet the deferral conditions in ASC 810-10-65-2(aa). After a reporting entity determines whether the deferral criteria are met, determining whether an entity is a VIE is the next step in assessing whether an entity should be consolidated. Even a company with wholly owned consolidated subsidiaries must determine whether any of its subsidiaries (as well as any interests it may have in other entities) are VIEs.Note that because of a change in facts and circumstances, a potential VIE and the reporting entity’s interest in a potential VIE that initially met the deferral conditions in ASC 810-10-65-2(aa) may subsequently lose the ability to apply the deferral. In this situation, ASU 2009-17 becomes effective for the potential VIE and the reporting entity’s interest in the potential VIE. If a reporting entity must consolidate an entity that no longer qualifies for the deferral, the assets, liabilities, and noncontrolling interests of the VIE shoul d be measured in accordance with ASC 810-1030-1 through 30-6. Once a reporting entity applies the amendments of ASU 2009-17 to the potential VIE, it cannot subsequently requalify for the deferral conditions in ASC 810-10-65-2(aa). 7 ExampleEnterprise A has 60 percent of the voting interest in Entity B. Enterprise A also receives fees for providing asset management services to B. Unless one of the scope exceptions in ASC 810-10-15-12 and 15-17 applies to A (the potential accounting parent) or B (the potential accounting subsidiary), A must determine (1) whether B, and A’s interest in B, meets the conditions in ASC 810-10-65-2(aa), (2) whether A holds a variable interest or variable interests in B, and (3) whether B is a VIE. Scenario 1: If B, and A’s interest in B, meets the conditions in ASC 810-10-65-2(aa), A must determine whether B is a VIE, as defined in ASC 810-10-15-14 (before the amendments in ASU 2009-17).If A holds a variable interest, as defined in ASC 810-10 -20 and illustrated in ASC 810-10-55-16 through 55-41 (before the amendments in ASU 2009-17), in B and B is a VIE, A should assess whether it is the primary beneficiary in accordance with ASC 810-1025-38 (before the amendments in ASU 2009-17). Enterprise A should also provide the disclosures in ASC 810-10 (as amended by ASU 2009-17). Scenario 2: If B does not meet the conditions in ASC 810-10-65-2(aa), A must determine whether B is a VIE, as defined in ASC 810-10-15-14 (as amended by ASU 2009-17). If A holds a variable interest, as defined in ASC 81010-20 and illustrated in ASC 810-10-55-16 through 55-41 (as amended by ASU 2009-17), in B and B is a VIE, A should assess whether it is the primary beneficiary in accordance with ASC 810-10-25-38A (as amended by ASU 2009-17). Enterprise A should also provide the disclosures in ASC 810-10 (as amended by ASU 2009-17).Scenario 3: If B meets the conditions in ASC 810-10-65-2(aa) but is not a VIE, as defined in ASC 810-10-15-14 (before the am endments by ASU 2009-17), A should apply the voting interest model in ASC 810-10 to B. Scenario 4: If B does not meet the conditions in ASC 810-10-65-2(aa) and is not a VIE, as defined in ASC 810-1015-14 (as amended by ASU 2009-17), A should apply the voting interest model in ASC 810-10 to B. Substantive Terms and Arrangements ASC 810-10 15-13A For purposes of applying the Variable Interest Entities Subsections, only substantive terms, transactions, and arrangements, whether contractual or noncontractual, shall be considered.Any term, transaction, or arrangement shall be disregarded when applying the provisions of the Variable Interest Entities Subsections if the term, transaction, or arrangement does not have a substantive effect on any of the following: a. b. c. A legal entity’s status as a VIE A reporting entity’s power over a VIE A reporting entity’s obligation to absorb losses or its right to receive benefits of the legal entity. [Paragraph 2A] 15-13B Judgm ent, based on consideration of all the facts and circumstances, is needed to distinguish substantive terms, transactions, and arrangements from nonsubstantive terms, transactions, and arrangements. [Paragraph 2A] 1. 02 Consideration of Substantive Terms, Transactions, and Arrangements Question What is meant by â€Å"substantive terms, transactions, and arrangements† in ASC 810-10-15-13A? AnswerIn ASU 2009-17, the FASB added guidance to emphasize that when applying the provisions of the VIE subsections of ASC 810-10, a reporting entity should only consider substantive terms, transactions, and arrangements, whether contractual or noncontractual. The Board thought that it needed to add this language to avoid situations in which the form of an entity may indicate that an entity is not a VIE or that a reporting entity is not a primary beneficiary when the substance of the arrangement may indicate otherwise. Paragraph A35 in the Basis for Conclusions of Statement 167 states, in par t: The Board considered whether additional guidance was needed for determining whether a variable interest holder has power when the economics of the holder’s interest(s) or other involvements is inconsistent with its stated power from such interest(s) or other involvements.The Board agreed that an increased level of skepticism is needed in situations in which an enterprise’s economic interest in a [VIE], including its obligation to absorb losses or its right to receive benefits, is disproportionately greater than its stated power. In the Board’s view, the level of skepticism about an enterprise’s lack of power should increase as the disparity between an enterprise’s economic interest and its power increases. 8 When the provisions of ASC 810-10 (as amended by ASU 2009-17) are applied, the consolidation conclusion should not be affected by any term, transaction, or arrangement that does not truly affect the reporting entity’s power or rights to receive benefits or obligations to absorb losses.A reporting entity should use judgment, based on consideration of all the facts and circumstances, to distinguish substantive terms, transactions, and arrangements from nonsubstantive terms, transactions, and arrangements. To further emphasize this point, the SEC has reminded registrants of the staff’s skepticism about accounting conclusions that do not conform to the economic substance of the arrangement. For example, in remarks regarding the implementation of ASU 2009-17 before the 2009 AICPA National Conference on Current SEC and PCAOB Developments, Arie Wilgenburg, a professional accounting fellow in the SEC’s Office of the Chief Accountant, discussed the following examples: [A]ssume a company has transferred assets to a structure to be managed by a third party, but the anager’s equity interest in the structure is minimal and appears to be guaranteed given the management fee structure. In addition, assume t he manager can be removed by the reporting enterprise if the manager’s performance is unsatisfactory. The combination of the above factors indicates that the company may not have relinquished control; rather the manager may simply be acting as an agent on behalf of the reporting enterprise. We have also seen other, similar structures that include a buy-sell clause rather than a removal right, as a mechanism for dissolving the structure. However, if the manager does not have the financial ability to exercise its rights under the buy-sell provision, the substance of this provision may be a call option by the transferor.Again, this may be an indication that the manager is simply acting as an agent on behalf of the reporting enterprise. At the same conference, James Kroeker, chief accountant in the SEC’s Office of the Chief Accountant, indicated that the staff would consider involving the Division of Enforcement if it becomes aware of arrangements such as those discussed b y Mr. Wilgenburg. Scope and Scope Exceptions ASC 810-10 15-12 a. b. c. d. e. The guidance in this Topic does not apply in any of the following circumstances: An employer shall not consolidate an employee benefit plan subject to the provisions of Topic 712 or 715. [Subparagraph superseded by Accounting Standards Update No. 009-16] [Subparagraph superseded by Accounting Standards Update No. 2009-16] Investments accounted for at fair value in accordance with the specialized accounting guidance in Topic 946 are not subject to consolidation according to the requirements of this Topic. A reporting entity shall not consolidate a governmental organization and shall not consolidate a financing entity established by a governmental organization unless the financing entity meets both of the following conditions: 1. 2. Is not a governmental organization Is used by the business entity in a manner similar to a (VIE) in an effort to circumvent the provisions of the Variable Interest Entities Subsec tions. [Paragraph 4] 5-17 The following exceptions to the Variable Interest Entities Subsections apply to all legal entities in addition to the exceptions listed in paragraph 810-10-15-12: a. Not-for-profit entities (NFPs) are not subject to the Variable Interest Entities Subsections, except that they may be related parties for purposes of applying paragraphs 810-10-25-42 through 25-44. In addition, if an NFP is used by business reporting entities in a manner similar to a VIE in an effort to circumvent the provisions of the Variable Interest Entities Subsections, that NFP shall be subject to the guidance in the Variable Interest Entities Subsections. Separate accounts of life insurance entities as described in Topic 944 are not subject to consolidation according to the requirements of the Variable Interest Entities Subsections.A reporting entity with an interest in a VIE or potential VIE created before December 31, 2003, is not required to apply the guidance in the Variable Interest Entities Subsections to that VIE or legal entity if the reporting entity, after making an exhaustive effort, is unable to obtain the information necessary to do any one of the following: 1. 2. 3. Determine whether the legal entity is a VIE Determine whether the reporting entity is the VIE’s primary beneficiary Perform the accounting required to consolidate the VIE for which it is determined to be the primary beneficiary. b. c. 9 ASC 810-10 (continued) This inability to obtain the necessary information is expected to be infrequent, especially if the reporting entity participated significantly in the design or redesign of the legal entity. The scope exception in this provision applies only as long as the reporting entity continues to be unable to obtain the necessary information.Paragraph 810-10-50-6 requires certain disclosures to be made about interests in VIEs subject to this provision. Paragraphs 810-10-30-7 through 30-9 provide transition guidance for a reporting entity t hat subsequently obtains the information necessary to apply the Variable Interest Entities Subsections to a VIE subject to this exception. d. A legal entity that is deemed to be a business need not be evaluated by a reporting entity to determine if the legal entity is a VIE under the requirements of the Variable Interest Entities Subsections unless any of the following conditions exist (however, for legal entities that are excluded by this provision, other generally accepted accounting principles [GAAP] should be applied): 1.The reporting entity, its related parties (all parties identified in paragraph 810-10-25-43, except for de facto agents under paragraph 810-10-25-43(d)), or both participated significantly in the design or redesign of the legal entity. However, this condition does not apply if the legal entity is an operating joint venture under joint control of the reporting entity and one or more independent parties or a franchisee. The legal entity is designed so that substan tially all of its activities either involve or are conducted on behalf of the reporting entity and its related parties. The reporting entity and its related parties provide more than half of the total of the equity, subordinated debt, and other forms of subordinated financial support to the legal entity based on an analysis of the fair values of the interests in the legal entity.The activities of the legal entity are primarily related to securitizations or other forms of asset-backed financings or single-lessee leasing arrangements. 2. 3. 4. A legal entity that previously was not evaluated to determine if it was a VIE because of this provision need not be evaluated in future periods as long as the legal entity continues to meet the conditions in (d). [Paragraph 4] Overall Scope Considerations 1. 03 Application of the VIE Model in ASC 810-10 to Non-SPEs Question Does the VIE model in ASC 810-10 apply only to SPEs? Answer No. ASC 810-10-15-12 and 15-17 provide scope exceptions for cer tain reporting entities and potential VIEs.Variable interest holders should evaluate all entities that do not fall under these scope exceptions (such entities may include limited partnerships, joint ventures, cooperatives, and trusts) to determine whether they represent VIEs. (For more information about the determination of which consolidation model to apply, see Q&A 1. 01. ) Note that ASU 2009-16 eliminated the scope exception for QSPEs. Therefore, transferors, sponsors, and investors in QSPEs should consider the consolidation and disclosure provisions in ASC 810-10. (For more information about the elimination of the QSPE scope exception, see Q&A 1. 07. ) 1. 04 Qualification of a SPE as a Voting Interest EntityIf an SPE is a VIE, it is subject to consolidation under the VIE model in ASC 810-10. Question Are all SPEs automatically considered VIEs and within the scope of the VIE model in ASC 810-10? Answer No. An SPE can qualify as a voting interest entity and therefore be outside th e scope of the VIE model in ASC 81010. To determine whether the SPE is outside the scope of the VIE model, a reporting entity must evaluate the SPE under ASC 810-10-15-14. To not be a VIE, such an entity must fail to satisfy all conditions in ASC 810-10-15-14. Demonstrating only that an entity possesses one attribute of a voting interest entity, as described in ASC 810-1015-14 (e. g. simply having sufficient equity investment at risk, giving the equity holders voting rights with respect to activities of the entity), is not sufficient evidence that an entity is not a VIE. 10 If an entity is outside the scope of the VIE model in ASC 810-10, it should be considered for consolidation under the voting interest model in ASC 810-10. 1. 05 Application of the VIE Model in ASC 810-10 to Multitiered Legal Entity Structures Question In an ownership structure in which multiple layers of legal entities exist, should a reporting entity apply the VIE model in ASC 810-10 to each of its subsidiaries on a consolidated or nonconsolidated basis? AnswerIn a multitiered legal-entity structure, a reporting entity should generally begin its evaluation at the lowest-level entity. Each entity within the structure should then be evaluated on a consolidated basis. The attributes and variable interests of the underlying consolidated entities become those of the parent company upon consolidation. When a reporting entity applies the VIE model in ASC 810-10 to a consolidated entity, it should analyze the design of the consolidated entity, including an analysis of the risks of the entity, why the entity was created (e. g. , the primary activities of the entity), and the variability the entity was designed to create and pass along to its interest holders (see ASC 810-10-25-21 through 25-36).Note that there are situations in which a reporting entity may â€Å"look through† a holding company and in which it therefore would not be required to examine the structure on a consolidated basis. F or more information, see Q&A 1. 06. Example 1 Two investors each hold 50 percent of the ownership interests in Company H. Company H has 100 percent of the ownership interests in Entity X and consolidates X. Entity X is a business as defined in ASC 805 and represents substantially all of H’s consolidated activities and cash flows. On a nonconsolidated basis, H does not meet the definition of a business in ASC 805. There are no other relationships or agreements between the investors, H, or X.As noted above, the attributes of a consolidated entity become the attributes of the parent company. In this example, X’s attributes become those of H. When the investors are evaluating their ownership interests, they should consider H’s design on a consolidated basis. Because X meets ASC 805’s definition of a business and its activities and cash flows represent substantially all of H’s consolidated activities and cash flows, H also meets ASC 805’s definit ion of a business. Before applying the business scope exception, the investors must first determine whether any of the four conditions in ASC 810-10-1517(d) exist for H’s consolidated activities and cash flows. If so, the business scope exception cannot be applied.A holding company that has ownership interests in a single entity in multitiered structures should also consider the guidance in Q&A 1. 06. Example 2 Two investors each hold 50 percent of the ownership interests in a holding company. The holding company has 100 percent of the ownership interests in Entity E and consolidates E. Entity E meets ASC 805’s definition of a business and represents substantially all of the holding company’s consolidated activities and cash flows. The holding company also consolidates Entity N, which does not meet ASC 805’s definition of a business. Other than its investments in E and N, the holding company has no assets, liabilities, or activities. There are no other re lationships or agreements between the investors, the holding company, E, or N.As in Example 1, the attributes of the consolidated entity become those of the parent company. In this example, the attributes of E and N become those of the holding company. When the investors are evaluating their ownership interests, they should consider the holding company’s design on a consolidated basis. Because substantially all of the holding company’s consolidated activities and cash flows are derived from E, the holding company meets ASC 805’s definition of a business. Before applying the business scope exception, the investors must first determine whether any of the four conditions in ASC 810-10-15-17(d) exist for the holding company’s consolidated activities and cash flows.If so, the business scope exception cannot be applied. 11 Example 3 An investor holds 50 percent of the ownership interests in a holding company. The holding company consolidates the following two e ntities, both of which meet ASC 805’s definition of a business: †¢ †¢ EntityJ,anoperatingentity. EntityL,whoseonlyassetisabuildingthatisleasedtotheinvestor. Entity L’s activities and cash flows represent substantially all of the holding company’s activities and cash flows. Other than its investments in J and L, the holding company has no assets, liabilitie