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In general, we would not expect typical joint plant arrangements to be subject to consolidation under ASC 810. However, it is important as a first step to consider whether a legal entity is involved and whether ASC 810 should be applied. The SEC highlights this concept in Footnote 1 of SAB Topic 10.C.

Excerpt from SAB Topic 10.C

Before considering the guidance in this SAB Topic, registrants are reminded that the arrangement should be evaluated in accordance with the provisions of ASC Topic 810.

In a typical joint plant arrangement, there is no single legal entity holding the plant that would be subject to evaluation under ASC 810. Therefore, joint plant interests of this nature would not be subject to consolidation under ASC 810. Instead, these interests are usually accounted for using a specific accounting model that follows the legal form of the ownership interest.
In contrast, if a plant is constructed and operated within a separate legal entity established to hold and finance the arrangement, the entity may be subject to consolidation or the equity method of accounting and joint plant accounting is not applicable. See UP 9 for information on accounting for interests in power plant entities and UP 10 for information and considerations related to consolidation.
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