DQC Updates for Variable Interest Entities (VIE)

DQC Updates for Variable Interest Entities (VIE)

The Data Quality Committee (DQC) released version 10 of its ruleset on October 1, 2019. Since the introduction of the 2020 US-GAAP taxonomy, some of the guidance for Variable Interest Entities (VIE) has become outdated, and the DQC has proposed a change to rule DQC_0083 to accommodate for the new taxonomy. 

Previously, there were two methods of tagging Variable Interest Entity data: using dimensions or using VIE-specific concepts. Both of these have been affected by the deprecation of concepts and dimensions in the 2020 taxonomy. 

First Method: Using dimensions

The existing rule flagged the usage of VariableInterestEntitiesByClassificationOfEntityAxis when the member was either VariableInterestEntityPrimaryBeneficiaryAggregatedDisclosureMember or VariableInterestEntityPrimaryBeneficiaryMember.  

In the 2020 taxonomy, both VariableInterestEntitiesByClassificationOfEntityAxis and VariableInterestEntityPrimaryBeneficiaryAggregatedDisclosureMember were deprecated, and the guidance needed to be updated to suggest the replacement of both the axis and member. 

The proposed change suggests using ConsolidatedEntitiesAxis and VariableInterestEntityPrimaryBeneficiaryMember to report these facts.

Second Method: Using VIE-specific concepts

Previous taxonomies included specific Variable Interest Entity concepts, such as VariableInterestEntityConsolidatedAssetsCurrent, to tag the financial statements for a VIE. These concepts have been deprecated in the 2020 taxonomy and are scheduled to be removed in the 2021 taxonomy. 

The new guidance suggests using the corresponding Balance Sheet concept AssetsCurrent with the ConsolidatedEntitiesAxis and VariableInterestEntityPrimaryBeneficiaryMember.

 

The DQC's suggestions on how to tag these variable interest facts should improve both the consistency and usefulness of VIE filings. The DQC rules are integrated into our Transform platform as they are approved to give filers the most up-to-date validation for their filings.