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The FASB issued final guidance to allow private companies to make an accounting policy election to not apply the variable interest entity guidance to certain arrangements between entities under common control in which the reporting entity, the legal entity being evaluated for consolidation and the common control parent are not public business entities. In addition, the FASB amended the variable interest entity guidance to require an entity to consider a decision maker’s indirect interests held through related parties under common control on a proportionate basis when determining whether decision-making fees are variable interests. For entities other than private companies, the guidance is effective for fiscal years beginning after 15 December 2019, and interim periods within those years. For private companies, it is effective for fiscal years beginning after 15 December 2020, and interim periods within fiscal years beginning after 15 December 2021. Early adoption is permitted.