As noted in BLG 3.18, a reporting entity will often lose control and deconsolidate its subsidiary that files for bankruptcy, as the subsidiary becomes subject to the control of the Court during the bankruptcy proceedings. If the parent entity previously deconsolidated a subsidiary in bankruptcy, the parent entity should apply the provisions of ASC 805 in cases when it regains control of its previously deconsolidated subsidiary upon the subsidiary's emergence from bankruptcy.