Academic literature on the topic 'Variable interest consolidation FIN 46'

ABSTRACT This study examines whether the adoption in 2003 of FASB Interpretation No. 46/R (FIN 46), Consolidation of Variable Interest Entities—An Interpretation of ARB No. 51, changed the cost of capital for affected firms. Using comparative analysis on a broad sample of 11,719 firm-quarter observations for 1,389 firms during the period 1998 through 2005, we find evidence that FIN 46 significantly increased the cost of equity capital for firms with affected variable interest entities (VIEs), an increase of approximately 50 basis points relative to firms reporting no material effect from the standard. Further, firms consolidating these formerly off-balance sheet structures experienced the largest increase. Taken together, these results suggest that FIN 46 reduced the opportunity for firms to use off-balance sheet structures to artificially reduce their cost of capital, a matter of regulatory concern. Data Availability: All data are available from public sources.

Abstract Although the therapy of acute myeloid leukemia (AML) has remarkably improved over the last 2-3 decades, two thirds of young adults still die of their disease. In elderly adults, who represent the majority of patients with AML, the results are even more unsatisfactory with less than 10% of patients being long-term survivors. Based on this, age is universally recognized as a critical prognosticator affecting outcome and therefore treatment choice. In consecutive series of adult patients with de novo AML, we have repeatedly demonstrated the prognostic role of minimal residual disease (MRD) as detected by flow cytometry. In particular, we have found that a level of MRD ≥ 3.5x10e-4 residual leukemic cells (RLC) at the end of consolidation is associated with a relapse rate of 70-80%. In the present study we evaluated whether the prognostic impact of MRD assessment after consolidation remained unaltered even in age-stratified (< 60 and > 60 years) populations of adult patients with de novo AML. To this end, we analyzed 149 young (median age 46, range 18-60) and 61 elderly adults (median age 67, range 61-78). All patients under study achieved complete remission after an induction therapy of the EORTC/GIMEMA protocols AML10, LAM99P and AML12 (for patients < 60 years) or AML13, AML15A and AML17 (for patients > 60 years). The two cohorts were well balanced in terms of frequency of FLT3-ITD and NPM1 mutated cases. A lower frequency of favorable-risk karyotypes was observed in elderly versus young patients (4% vs 19%, p=0.024). Of 149 younger patients, 105 (70%) underwent stem cell transplantation (SCT) (45 allogeneic, 60 autologous) as compared to 7 (11%) in the older age group (1 allogeneic, 6 autologous), (p=<0.0001). The frequency of MRD negative measurements was lower among elderly patients as compared to the younger ones [7/61 (11%) vs 42/146 (28%), p=0.009]. The median value of MRD after induction was 2.9x10e-3 RLC (range 0-170) and 3.1x10e-3 RLC (range 0-220) in younger and older patients (p=NS), respectively. Conversely, post-consolidation MRD levels were significantly lower in the younger cohort (1.7x10e-3 RLC, range 0-360) as compared to the older one (3.3 x10e-3 RLC, range 0-72), (p=0.018). In both age groups, disease-free survival (DFS) (Fig. 1) and cumulative incidence of relapse (CIR) were significantly longer and lower for patients who achieved MRD negativity at the post-consolidation time-point (p=0.0003 and <0.0001, respectively). In multivariate analysis, MRD at the post-consolidation time-point (p=0.0013) and karyotype (favorable vs adverse, p=0.0073; intermediate vs adverse, p=0.06) confirmed an independent prognostic role affecting DFS. Even SCT procedure (both autologous or allogeneic), analyzed as a time-dependent covariate, was significantly associated to DFS (p<0.001). Age did not score as a significant variable in any prognostic model. In conclusion, elderly adults with AML infrequently become flow-MRD negative after consolidation therapy (11% vs 29%, p=0.008), likely due to a less intensive approach. However, those who succeed to enter MRD negativity have significantly superior DFS and CIR – comparable to the ones of young patients - that than those who remain positive.Figure 1Disease free survival stratified according to age and MRD status.Figure 1. Disease free survival stratified according to age and MRD status. Disclosures: No relevant conflicts of interest to declare.

Abstract BCR-ABL1-like acute lymphoblastic leukaemia (ALL) is a subgroup of B cell precursor (BCP) ALL, which has a similar gene expression profile to BCR-ABL1 positive ALL and shares the same high risk of relapse. BCR-ABL1-like ALL is genetically heterogeneous and no single abnormality defines them. However a number of novel fusion genes have been reported in this subgroup, which involve the kinase genes: PDGFRB, CSF1R, ABL1, ABL2 and JAK2. Studies have shown that patients with these fusions may also respond to tyrosine kinase inhibitors (TKI), such as imatinib. Here we present a subset of patients with the SSBP2-CSF1R fusion, including a patient treated with imatinib after relapse. Five patients with BCP-ALL were identified with cytogenetically visible abnormalities of chromosome 5, which resulted in fusion of the SSBP2 at 5q14 to CSF1R at 5q33. Three patients showed balanced translocations, t(5;5)(q14;q33) and 2 showed duplication of the long arm of chromosome 5, dup(5)(q14q33). FISH analysis using in-house dual colour break-apart probes confirmed rearrangement of the CSF1R and SSBP2 genes in 4 patients. In the two cases showing dup(5)(q14q32) the duplication was confirmed by single nucleotide polymorphism (SNP) array analysis with the breakpoints occurring within SSBP2 and CSF1R. Paired end sequencing in 3 cases confirmed that the breakpoints within SSBP2 and CSF1R with the predicted transcriptional consequence being an in-frame fusion of SSBP2 exon 5 or 6 to CSF1Rexon 12. Genome wide SNP array analysis was performed in 4 cases, which revealed few copy number abnormalities (CNA) at diagnosis, with less than 5 CNA per patient. The only recurrent CNA was loss of IKZF1, seen in 2 patients; one had an intragenic deletion of exons 4-7 and the other a large deletion of approximately 22.5 Mb, spanning 7p11 to 7p14.2 and including biallelic loss of IKZF1exons 2-3. The clinical and demographic data for the five patients are shown in Table 1. Complete remission (CR) was achieved in all cases. Two patients, who were <10 years at diagnosis and received standard chemotherapy, have continued in CR1 for >10 years. The oldest patient was a 40 year old female who died due to graft versus host disease following a bone marrow transplant. Patients 4 and 5 were treated as high risk due to age, high WCC (>50 x109/L) and minimal residual disease (MRD) risk. Despite receiving intensive therapy, both patients suffered relapses. Patient 4, who relapsed while receiving consolidation therapy, failed to achieve CR2 and subsequently died. Patient 5 suffered an isolated bone marrow relapse one month after the end of treatment. She was treated according to the ALLR3 trial high risk arm and achieved CR2 and MRD negativity by day 35. The detection of the SSBP2-CSF1R fusion prompted the addition of imatinib (400 mg/d) to her regimen with the intention of maintaining remission until unrelated donor stem cell transplant. Unfortunately the patient died 11 weeks after relapse from infection (E. coli septicaemia). Although these cases were identified by cytogenetics, unbiased screening of a single childhood trial, UKALL2003 was carried out. Among 276 BCP-ALL patients without any of the established cytogenetic changes, a single case (Patient 4) with the SSBP2-CSF1Rfusion was identified. This equates to less than 0.1% of childhood BCP-ALL. The incidence and outcome in adult BCP-ALL remains to be determined. This study highlights the rarity and variable outcome for paediatric patients with SSBP2-CSF1R fusions. Two young children treated as low risk achieved long-term event free survival, however 2 older children classified as high risk suffered early relapses. It is possible that children with ALL who are SSBP2-CSF1Rpositive may benefit from the incorporation of TKI into their treatment regime in the early stages of their disease. Given the rarity of this abnormality, it may not be necessary to screen all children, however those with refractory or high risk ALL should be investigated for lesions potentially responsive to TKI. Table 1 Patient no. Age Sex Trial WCC(x109/L) Karyotype Follow up 1 2 M ALL97 50.3 46,XY,t(5;5)(q14q33) CR1 >10yrs 2 4 F ALL97 18.2 47,XX,t(5;5)(q14;q33),+21 CR1 >10yrs 3 40 F UKALLXII 12.1 Failed. arr [hg19] 5q14q33(80721553-149443298)x3 Remission death 4 10 M UKALL2003 301.8 46,XY,t(5;5)(q14;q33)/46,XY,idem,t(3;20)(p21;q13) Relapsed and died 5 11 F Non-trial 8 46,XX,dup(5)(q14q33)† Relapsed and died in CR2 † karyotype at relapse Disclosures No relevant conflicts of interest to declare.

Abstract Presence of unique translocation events allows us to monitor minimal residual disease by quantitative polymerase chain reaction (qPCR) in patients with core binding factor acute myeloid leukemia (CBF-AML) that includes Inversion(16), t(16;16) and t (8;21) cytogenetic abnormalities. Fludarabine based regimens; Fludarabine, cytarabine, G-CSF and gemtuzumab ozogamicin (FLAG-GO) and FLAG, idarubicin (FLAG-Ida) have been two consecutive regimens used as front-line therapy for all new patients with CBF-AML presenting to MD Anderson Cancer Center since 2007. MRD has been monitored by baseline and periodic qPCR studies from bone marrow samples during induction/consolidation and follow up. Based on recent literature we investigated whether time to achievement of lowest qPCR value or the lowest qPCR value are important to predict for relapse free survival (RFS) in a multi-variate analysis. Between 2007 and early 2014, 89 patients (pts) have achieved remission with frontline induction regimens; FLAG-GO=41 (46%) and FLAG-Ida=48 pts (54%); 44 patients with Inv (16) and 45 pts with t(8;21). Median presenting WBC count is 12.5x 106/L (range 1.9-97.2) and median qPCR ratio with ABL1 as control at presentation is >100. Median lowest qPCR following induction/consolidation is 0 (range 0-15.9) and is the same for inv (16) and t(8;21) (p=0.14). The median lowest qPCR value by regimen is 0 for FLAG-GO and the same for FLAG-Ida is 0.01 (p=0.003). RFS with a median follow up of more than 3 years is 80% and is not different among regimens (p=0.5). Because of infrequency of events, the analysis was mostly done using both cytogenetic groups and both regimens together. Median time to lowest qPCR was 7 months for both cytogenetic subgroups as well as for both FLAG-GO and FLAG-Ida regimens (range 1-28 months). In a univariate analysis that included age, log WBC and platelet counts, cytogenetics, regimen, time to lowest qPCR value and the log lowest qPCR value as variables; log lowest qPCR is the only variable significantly predicting for RFS (p<0.01) while time to lowest qPCR is not (p=0.7). Conclusion: RFS remains high among patients treated with FLAG-GO or FLAG-Ida and lowest qPCR value rather than the time to achieve lowest qPCR. Disclosures No relevant conflicts of interest to declare.

Abstract Abstract 2639 Poster Board II-615 Background.- As wt1 expression is elevated in the majority (80%) of acute myeloid leukemias at diagnosis and relapse, a validated wt1 assay would be a powerful adjunctive tool for evaluation and monitoring of patients during their treatment. Monitoring of disease status with wt1 is applicable to more AML patients in a single assay than any other leukemic marker and includes patients that are cytogenetically normal and may not otherwise be amenable to molecular MRD evaluation. We aimed to analyse wt1 expression in the peripheral blood and bone marrow of patients with de novo AML, when measured at diagnosis, post-induction and post-consolidation; and to correlate these wt1 expression levels with patient characteristics and outcome. Methods- This is a prospective, longitudinal study in which the levels of wt1 expression from 99 patients with de novo AML are measured from bone marrow (59 patients) and peripheral blood (94 patients) specimens at the time of diagnosis and at various time-points along their treatment and clinical courses. The specimens were prospectively stored in the PwC Australasian Leukaemia and Lymphoma Group (ALLG) Tissue Bank. Samples analysed included: 59 bone marrow (bm-wt1) and 94 peripheral blood (pb-wt1) at diagnosis; 54 bm-wt1 and 57 pb-wt1 post-induction; and 46 bm-wt1 and 41 pb-wt1 post-consolidation. 90 of the 99 patients were treated with standard induction chemotherapy on a variety of protocols. RNA was extracted from 107 leukocytes purified from blood and bone marrow using TRIzol® (Invitrogen) extraction. Reverse transcription was performed using Superscript ® (Invitrogen) and RQ-PCR was performed using multiplexed 5' nuclease assay with Black Hole Quencher labelled probes according to published methods. Copy number of wt1 was normalised to 104 copies of ABL. Baseline patient characteristics were correlated with baseline wt1 expression levels and the impact of baseline and post-treatment wt1 expression on leukemia-free survival (LFS) was assessed. Results- 99 AML patients were studied: median age 55years, 53% male. Cytogenetic prognostic groups (SWOG) were favourable – 12%, intermediate – 59% and poor – 29%. 90 patients were treated with curative intent and 83% achieved CR, 6% had refractory disease and 11% died during induction. With a median follow-up of 33 months, the median LFS was 12 months and median OS was 24 months. Median pb-wt1 levels at diagnosis were 5122 (range, 1 to 36125) and varied significantly according to: cytogenetic risk group (good risk 12745, intermediate risk 2632, poor risk 4554 (P = 0.009)) and marrow blast percentage (P = 0.02). Diagnostic bm-wt1 showed similar correlations with baseline parameters, but did not reach statistical significance. Median pb-wt1 at relapse was 3781. One of 21 relapsed patients with elevated pb-wt1 expression at diagnosis did not express wt1 at relapse. In a multivariate Cox regression analysis model including age and cytogenetic risk-group, increased expression of wt1 from peripheral blood at diagnosis is predictive of decreased LFS (P=0.04). This correlation was not seen with wt1 measured from bone marrow aspirates. The wt1 expression levels were reduced following induction chemotherapy with a median 2.6 log reduction (range, 0 to 4.2) seen in marrow aspirate and 3.2 log reduction (range, 0 to 4.3) seen in peripheral blood. There was a trend for lower post-induction peripheral blood wt1 to correlate with better LFS when measured as a continuous variable (P=0.067) or undetected vs detected (P=0.051). Lower post-consolidation pb-wt1 significantly correlated with better LFS when measured as a continuous variable (P=0.002) or undetected vs detected (P=0.02) and continued to be significant in multivariate analysis. Bone marrow aspirate wt1 levels post-induction or post-consolidation did not correlate with LFS. Conclusion- This study demonstrates a correlation between wt1 expression levels and known risk factors for early relapse. In the MRD setting, detectable wt1 levels in peripheral blood post-induction and post-consolidation predicted very poor leukaemia free survival. Analysis is ongoing to validate these findings in a uniformly treated cohort of patients enrolled on the current ALLG clinical trial. Disclosures: No relevant conflicts of interest to declare.

Abstract Abstract 301 Background: While whole brain radiotherapy (WBRT) has long been considered the standard consolidative therapy in primary CNS lymphoma (PCNSL), concerns regarding irreversible neurocognitive effects of brain irradiation have prompted development of dose-intensive induction and consolidative chemotherapeutic approaches, with the aim to eliminate brain irradiation. We present the updated results of the first Phase II multicenter trial, conducted by a major cooperative group within the United States, to evaluate an intensive chemotherapy-alone strategy in newly diagnosed patients with PCNSL. Methods: Induction chemotherapy consisted of methotrexate (MTX), temozolomide, rituximab (MT-R) with HD-MTX (8 gm/m2) administered every 2 weeks × 8, weekly rituximab × 6 and temozolomide (150 mg/m2) starting day +7 and continued monthly × 5. Patients who achieved a CR received intensive consolidation cytarabine 2 gm/m2 BID on days 1–4 with etoposide 40 mg/kg over 96 h (EA). Assessment of BCL6 and MYC expression by lymphoma cells was performed by immunohistochemical analysis of diagnostic specimens and scored (10% increments) by a pathologist who was blinded to clinical outcome. Results: 44 newly diagnosed, immunocompetent patients with PCNSL were treated at 12 CALGB centers between 2005 and 2009. Patient characteristics were as follows: median age was 61 yr (range 12–76), median ECOG PS was 1, 58% were IELSG risk group 2–3. 98% of tumors were large B-cell lymphoma. 66% of patients exhibited CR to induction MT-R. With median overall follow-up of 5.3 years, 21 out of 46 patients exhibited disease progression and 17 have died. There was one treatment-related death (sepsis) during consolidation. There has been no evidence for significant treatment-related neurotoxicity. The median progression-free survival (PFS) is 4.0 years and estimated PFS rates with 95% confidence limits at 1, 2, 3 and 4 years are 0.66 (0.50, 0.76), 0.59 (0.43, 0.72), 0.52 (0.36, 0.64) and 0.47 (0.32, 0.61). The probability of 2-year PFS for patients who completed the entire regimen is 0.69 (0.47, 0.94). The estimated overall survival (OS) rate with 95% confidence limits at 4 years is 0.65 (0.49,0.77). Remarkably, event-free survival (EFS) was similar in patients older and younger than 60 (p< 0.47). While ECOG PS>1 and high IELSG score showed a trend toward inferior EFS, the most significant clinical prognostic variable was treatment delay: those patients who started remission induction therapy more than 30 days after diagnosis exhibited shorter EFS than patients who received MT-R within a month (2-sided p-value = 0.05). There was no relationship between treatment delay and IELSG prognostic score. While high MYC expression (>50% lymphoma nuclei) was detected in 54% of cases, MYC was not prognostic. By contrast, high BCL6 expression (≥30% of lymphoma nuclei) was detected in 59% of cases and correlated as a continuous variable with inferior progression-free survival, event-free survival and overall survival. The 2-sided p-values for these models were p=0.045, p=0.019 and p=0.045 (log-rank test). Conclusions: CALGB 50202 (Alliance) demonstrates that induction MT-R followed by EA consolidation is feasible in the multicenter setting and yields rates of PFS and OS in newly diagnosed PCNSL patients that are at least comparable to combined modality treatment involving reduced dose whole brain irradiation. The MT-R-EA regimen is well-tolerated in patients age >60 and has similar efficacy in this population as in younger patients. Based upon these encouraging results, a successor, intergroup, randomized phase II trial, CALGB 51101 (Alliance) has been activated that compares dose-intensive consolidation (EA) with myeloablative chemotherapy and autologous stem cell transplant in this first randomized trial in PCNSL in which neither arm involves WBRT. Our observations regarding the association of treatment delay with adverse prognosis suggest that prompt initiation of therapy for PCNSL patients may translate into improved outcomes. In this first prospective analysis of molecular biomarkers in PCNSL in the setting of a clinical trial, high BCL6 expression was found to correlate with inferior outcome. This observation raises the possibility that in future studies BCL6 could be used as a biomarker in risk-adapted therapy and supports the investigation of BCL6 antagonists in the treatment of this disease. Supported by LLS and by NCI CA13908301. Disclosures: No relevant conflicts of interest to declare.

Abstract Abstract 4868 FLT3-ITD occurs with a frequency of 35%–45% in normal karyotype AML and has an adverse impact on prognosis. FLT3-ITD mutations are very variable in length and position of the tandem duplication. We have analyzed 211 AML patients with a median age of 54 years (range, 17–75). For all patients, intensive double-induction and consolidation therapy were intended. Patients with a matched related (MRD) or unrelated donor (MUD) were allocated to allogeneic stem cell transplantation (alloSCT). To investigate ITD insertion site and length, as well as their clinical impact in AML patients, we have performed sequencing analysis in diagnostic samples from 46 FT3- ITD–mutated patients. In 39 (87%) patients a single sequence was found, 6 patients displayed 2 and more different mutations. The median size of the inserted sequences was 63 nucleotides (range, 21–203 nucleotides). ITD integration sites were categorized according to functional regions of the FLT3 receptor: juxtamembrane domain (JMD), n =29 (JMD switch motif, n=3; JMD zipper motif, n=20; and JMD hinge region, n=6) and beta1-sheet of the tyrosine kinase domain-1 (TKD1), n=17. In the majority of the cases insertion sites were localized in JMD between amino acid (AA) 593 and 609 (n=20; 43%) and in TKD1 between AAs 610 and 615 (n=17; 37%). Integration site was strongly correlated with the ITD size (p=0.001) and with white blood cells (WBC) count (p=0.05). The prognostic significance of FLT3-ITD size is discussed controversial. Several studies reported conflicting results. We have found that CR durations was significant better (p=0.05) in patients with bigger ITD size, and there were no statistical differences in OS and DFS. There was no significant association between the number of mutations and OS or DFS. Presence of the any type of mutations was more common in M5 (16 of 54, 29%, P 0.01). It was associated with normal karyotype (72% vs 43%), p=0,0001; higher white blood cells (WBC) count (98×109/l vs 21×109/l), p=0,0001; higher BM blasts (85% vs 71%, p=0,0001), de novo AML (91% vs 69%), p=0,0001); and inferior OS (p=0,008) and DFS (p=0,01), when we excluded AML M3 patients. The prevalence of ITD allele on the DNA level was heterogeneous. Based on quantitative analysis, the mutant/wild-type (wt) ratio ranged from 0,1 to 11,5. Patients with a mutant/wt ratio above 0,3 had significantly shorter CR duration (p=0,02), OS (p=0,03), and DFS (p=0,01). Taken together, our data confirm that FLT3 mutation represent a common aberration in adult AML and associated with inferior outcome. A high mutant/wt ratio appears to have a major impact on the prognostic relevance. Disclosures: No relevant conflicts of interest to declare.

Abstract INTRODUCTION Autologous stem cell transplantation (ASCT) is one of the current treatment options for first-line treatment of mantle cell lymphoma (MCL) in young and fit patients in first complete response (CR). Nevertheless its role in less than CR, after intensive chemotherapy schemas or as consolidation after salvage regimens has not been established. AIM To analyze the impact of patient and treatment characteristics on outcome of MCL patients treated with ASCT. METHODS Retrospective analysis of MCL patients treated with ASCT and registered in the GELTAMO database from 1994 to 2011. An outcome up-date was performed on December 2013. The study was approved by local ethical committees. Statistical analysis was performed using SPSS 15.0. RESULTS Two hundred and forty eight patients were registered from the GELTAMO database. Patients’characteristics : median age was 55 years old (range 21-70 y), 70% male. One hundred and fifty eight patients (68%) were transplanted in CR, 125 were in first CR (79% of all CR) and 33 in second or third CR (21%). Fifty two patients (22%) were transplanted in first partial response and 15 (6%) with chemosensitivity disease after relapse. Only 8 patients (3%) were transplanted with refractory disease. Response : forty-eight out of 75 patients (64%) without CR at ASCT converted to CR after transplant. Survival: Sixteen percent of patients were lost to follow-up one year after transplantation. Median follow-up for alive patients was 47 months (range 0-245 months). Progression free survival for patients transplanted in first CR was 45 months (CI95%: 33-56 months), for patients transplanted in first partial response (PR) was 28 months (CI95%: 15-21months) and for patients transplanted in other response was 19 months (CI95%: 12-26 months). In the whole series, median overall survival (OS) from transplantation was 69 months (CI95% 51-87 months) and for those patients transplanted in first CR was 98 months (CI95% 67-130 months). When patients without CR before transplant are analyzed separately, those who achieved CR after transplantation have better PFS (38 vs 10 months, p<0.001) and OS (74 vs 16 months, p<0.001) than others. Treatment related mortality was 4%. We analyzed the variables that could be associated with PFS and OS. We considered age (≤60 vs >60), ECOG (<2, ≥2), IPI (<2, ≥2), status at transplant (1st CR vs others), conditioning with TBI and HDAC in first line treatment. In univariate analysis, ECOG (p=0.04) and status at transplant (p=0.01) were the variables associated with PFS. For OS, the same variables resulted significant (p<0.001 and p=0.07, respectively) and also, HDAC emerged as significant variable associated with outcome. (p=0.05). In multivariate analysis, ECOG and status at transplant remained as independent prognostic factors for PFS while ECOG and HDAC in first line had impact for OS, see Table 1. Table 1. Variables identified as independent prognostic factors for PFS and OS in multivariate analysis. PFS OS p RR (95% CI) p RR ECOG 0.01 3.6 (1.3-9.9) 0.04 4.5 (1.6-12.5) Status at trasplant 0.03 1.4 (1-2) 0.09 (ns) ---- HDAC at 1st line 0.7 (ns) ---- 0.014 0.5 (0.3-0.8) Afterwards, a survival analysis for PFS and OS was performed according to have received high dose AraC (HDAC) in first line treatment or not and disease status (DS) before ASCT (Table 2). Table 2. Survival analysis according to have received HDAC in 1st line treatment and disease status (DS) before ASCT DS before ASCT N Firts line treatment N PFS (CI95%)(Kaplan Meier) p OS (CI95%)(Kaplan Meier) p 1st CR 125 No HDAC 52 37 (22-51) 0.13 64 (37-91) 0.01 HDAC 72 56 (33-78) No reached 1st PR 52 No HDAC 35 33 (3-63) 0.59 61 (0-126) 0.9 HDAC 17 27 (18-37) 69 (46-92) ≠1st CR/PR 51 No HDAC 46 20 (13-27) 0.16 35 (5-66) 0.9 HDAC 5 11 (7-16) No reached CONCLUSION This retrospective study reproduces previous results published about the role of ASCT in MCL: ASCT consolidation in first CR induces high survival rates with a median PFS of 45 months and median OS of 98 months. Patients without CR after ASCT had a significant inferior outcome. ECOG < 2 and status at transplantation are crucial for PFS and first line treatment with AraC improves significantly OS, particularly in patients with first CR. Disclosures No relevant conflicts of interest to declare.

Abstract Abstract 2039 Introduction. The role of allogeneic stem cell transplantation in the management of aggressive non-Hodgkin's lymphoma (NHL) remains to be established. Autologous stem cell transplantation (SCT) remains the standard salvage therapy for patients with diffuse large B cell lymphoma failing first line therapy although patients relapsing early after Rituximab based immunochemotherapy have a poor outcome. For patients with aggressive T cell lymphomas the role of consolidation or salvage transplant strategies also remains controversial. Reduced intensity allogeneic transplants have been employed in these diseases with variable success. In the United Kingdom the more intensive BEAM conditioning regimen has been employed prior to allogeneic stem cell transplantation in lymphoproliferative diseases. We report here the outcome of BEAM-CAMPATH conditioning prior to allogeneic stem cell transplantation for aggressive NHL as reported to the British Bone Marrow Registry. Methods. We retrospectively identified all patients reported to the BSBMT registry as having undergone an allogeneic stem cell transplant following BEAM-CAMPATH conditioning for aggressive non-Hodgkin's lymphomas. All patients received conditioning with BEAM (BCNU 300mg/m2, etoposide 800mg/m2, cytarabine 1600mg/m2, melphalan 140mg/m2) and CAMPATH-1H 10mg days -6 to -2. Cyclosporin A was administered for 90 days post transplant. Six transplant centres contributed data to this study. Results. 46 patients (27 male, 19 female) with a median age of 45 (range 17–59) at diagnosis with DLBCL (29), Burkitt's lymphoma (1) or T cell lymphoma (PTCL NOS 14, anaplastic large cell lymphoma 3, angioimmunoblastic lymphoma 1) were identified. 37 patients had stage III/IV disease at diagnosis and 56% of patients had a high or high-intermediate International Prognostic Score. They had received a median of 3 lines of prior therapy (range 1–5), 11 of 29 patients with B cell lymphomas had received Rituximab prior to transplant and 4 patients had received a prior autologous stem cell transplant. The median time from diagnosis to transplant was 11 months (range 3 months–13 years) and 22 patients had received the transplant in first response. At transplant 34 patients had chemosenstive disease and 11 patients had chemorefractory disease. Transplants from 32 siblings and 14 volunteer unrelated donors were performed using peripheral blood stem cells in 42 patients. 3 patients received a mismatched transplant. The Performance Status (PS) at transplant was good (KPS>80) in 40 of 46 patients. All patients engrafted with a median time to neutrophil recovery of 14 days (range 11–27). At last follow up 20 patients are alive with 17 in complete remission. 5 patients have died from non-relapse causes (infection 3, GVHD 1, respiratory failure 1) and 21 died following relapse of lymphoma. Acute GVHD grades II-IV developed in 7 patients and chronic GVHD in 13 (7 limited, 6 extensive) of 37 patients surviving beyond 100 days. The cumulative incidence (CI) of non-relapse mortality (NRM) was 7% at 100 days and 11% at 3 and 5 years post transplant. NRM was significantly worse for those with a poor PS, use of a VUD, prior autologous SCT and more lines of prior therapy. The relapse risk at 1 and 5 years was 51% and 53% respectively and was associated with use of a sibling donor. Disease status at transplant had no impact on the relapse rate. The progression free survival (PFS) was 41% and 36% at 1 and 5 years respectively with a trend to a higher PFS in patients under 45 years. The overall survival (OS) was 54% t 1 year and 42% at 5 years with a significantly better OS in CMV low risk transplants. Conclusion. BEAM-CAMPATH conditioning prior to allogeneic SCT is well tolerated in patients with aggressive NHL although there remains a significant relapse rate following this therapy. A significant minority of patients achieve durable disease free survival. The role of BEAM-CAMPATH allogeneic stem cell transplantation in these diseases warrants further investigation. Disclosures: No relevant conflicts of interest to declare.

2007/2008
FASB introduction of FIN 46/R variable interest consolidation model proved revolutionary as it ties up the accounting to the economic/financial frameworks and the judicial one. Legal structures and agreements among stakeholders of entities, creating net assets’ variability, have from now on to be compared with expected losses and expected returns distribution, prior to identify which stakeholder will need to consolidate pursuant this Interpretation. As a result, return variability gains weight in the definition of variable interest entity with consequences still to be completely digested by practitioners and reporting enterprises. Because of the implementation of this Interpretation, consolidation by a party that absorbs most of the entity expected losses will have precedence even over stock-ownership’s control by the parent company (voting rights driven). The revolution though is only meant for a wide, yet selected, subset of entities' classes being securitisations, life and health insurances and governmental organisations aimed for profit, left outside the scope of this Interpretation. Consolidation through variable interest model is the result of four major steps. First alone is the definition of entity, being any legal structure to conduct activities and hold assets. Second, the identification of the variable interests in it, deriving from recognition of the aggregate which fair value changes with changes in fair value of net assets, exclusive of variable interests. These changes in fair value are considered regardless of embedded voting rights; hence, mezzanine finance, preferred stock and any hybrid equity instrument in general need to be detailed in their features prior to taking further decision. Third, the estimate of expected losses and residual returns whose value relevance has been given vast insight in this paper. Fourth and last step, the recognition of the primary beneficiary, when it exists, which is the party that absorbs the greatest share of expected losses and/or that benefits the most from expected residual returns and ultimately, the party that will consolidate the variable interest in object. Throughout the variable interest consolidation process, the concept of ‘equity at risk’ is introduced by FASB to define which is the effective portion of equity that absorbs variability created by net assets of the variable interest entity. Notwithstanding an introduced sufficiency test, aimed at deducting from US GAAP equity, all components that are not legal obligations to capitalise the entity, still difficulties exist. This is due to a series of exclusions namely; legal equity is to be deducted of fees, loans or guarantees thereof, shares issued in exchange of subordinated interests in other VIEs shall be subtracted as well from equity at risk, in the end also investments to be considered non significant shall be deducted. In this regard, valuations are either explicitly or implicitly to be done at fair value, hence book values need to make room for financial analysis giving in this respect value relevance to the Interpretation. The ‘equity at risk’ concept is the result of deductions that run through both sides of the balance sheet. Particular judgment shall be used in evaluating guarantees and other off-balance sheet obligations. This paper takes also in consideration the test proposed by FASB for ‘non significant investments’ proposing a refined method to reduce variability in interpretative judgment by the reporting entity. Furthermore, FASB identifies a new category of VIEs: variable interests in specified subset of assets of a VIE (i.e. a guarantee) which can be treated as distinctive VIEs by FASB only if the fair value of the same assets is greater than 50% of the whole fair value of the entity. If so happens, then equity at risk is to be deducted accordingly and expected losses/residual returns (EXLS/EXRR) of this subset of assets is not considered for sake of determining the primary beneficiary. The distinct VIE, which in accounting goes also under the name of Silo, will have to be treated separately as another VIE. From this analysis on assets and financial structure, which is derived from CON 6, FASB correctly deconstructs the accountancy legacy notion of control by segregating the decision making ability on the VIE from the variability absorption rights and obligations. The former, given by the financial decisions on VIE’s financial structure and by investment on net assets, the latter dictated by obligation to fund losses and to receive residual returns, i.e. by assigning the right to receive future residual returns and the obligation to make future capital contributions. Under a valuation viewpoint, assets and liabilities of newly consolidated VIE are measured at fair value while the ones already pertaining to a primary beneficiary, which is already a parent, remain reported at carrying value being already in the consolidated balance sheet of the controlling company. FIN 46/R in this way allows goodwill to be recognised for acquisitions of VIEs, which constitute businesses for use in this Interpretation. If the consideration paid for the VIE interest (carrying value plus premium/discount) is instead lower than the fair value of its net assets at consolidation, then a decrease in value of the newly consolidated assets shall be reported. Exception is made by cash & marketable securities, tax assets, post retirement plans and the likes. In this regard VIEs, which are not businesses will originate extraordinary gains or losses accordingly, in case of extraordinary gains, the value of the newly acquired assets is stepped-up pro quota. While FIN 46/R valuation principles of expected losses, expected residual returns and definition of balance sheets arising from VIE consolidation, resides on fair values, practitioners and reporting enterprises alike base their forecast from use of private information. This in turn, gives birth to entity-specific values, which take into account private information comprising of entity plans and current competitive strategy, which are a function of present industry positioning. Part of the process in determining EXLS/EXRR and the existence or not of a primary beneficiary, in line with the variable interest consolidation model, is to go through a profit variability analysis to be done through discounted cash flow models. To try to shed some more light on this regard we have first refreshed the mathematics of series of random variables with the objective to estimate VIEs’ expected cash flows of income. VIEs are generally modelled as a random variable with statistic mean different from statistic mode, a fact omitted in some passages of FIN 46/R exposition. Subsequently we have underlined that the variability of returns is directly related with the interval of confidence set for distribution functions representing random variables when computing the reporting entity forecast of expected variability. The potential deadlock could be widening when different interest holders are implementing different modelling of the reporting entity which yield to different results, but still acceptable under the Interpretation prescriptions. FASB introduction of non-previous US GAAP measures like EXLS/EXRR are, as we believe, in need to be backed up by a more robust theoretical framework. To do so, we needed to characterise the choice of the discount rate. In this framework, we have once again taken the theoretical basis of cost of capital, highlighting the equivalence of the results of other methods; including pros and cons of the utility functions and certainty equivalence method and the risk adjusted probability method. We have then given evidence on why FASB should use the cost of capital method as the discount rate to compute income variability together with income streams. In fact, by using the cost of capital method, and the WACC deriving from CAPM, all financial risk is embedded in the discount rate leaving the reporting enterprise free to express in the books the operational risks known or of most suitable estimation. Nowadays marginal cost of debt and market value of equity are used in common practice, according with CAPM theory, and have their use extended to private businesses. The cost of capital for private enterprises make use of sensitivity correlation coefficient of the enterprise return over the market return (beta coefficient) are of difficult estimate for private entities although betas can be computed in a number of ways using assumptions which are proper of the enterprise and its industry peers. To close the chapter related to valuation, finally we have focused on how these methodologies are being implemented by corporate America realising that the fears for value relevancy and hardship in tailoring the application to the single entities is a shared feeling and still a process far from crystallisation. In particular, FASB does not impose a clear conversion from book values to either fair values or value-in-use ones. It neither rules out the use of different valuation methods, if not for particular aspects treated within its FSP 46/R-S, in the exercise of computation of expected variability, which we have to recognise has not been proper of the accountancy function until lately. This thesis proposes an algorithm that goes in detail in the application of FIN 46/R for a reporting enterprise taking into account all possible interrelations among interest holders and distinct interest in subset of assets. The algorithm brings to light the weaknesses in application of the Interpretation caused by potential interrelations between expected losses assessment and variable interests in specified assets, wherever the fair value of these is more than 50% of net assets, i.e. distinctive VIEs. The algorithm, despite being in line with FIN 46/R prescriptions, does not cope with situations of cross default of related parties’ investors in the same VIE. However while the application of a cause and effect model is not always possible we think increased consolidation constraints would highly reduce these possibilities. In the process for determining if the reporting entity is a VIE, FASB develops also the ‘at risk’ test, highlighting once again the relevant weaknesses of the concepts of ‘previous ability to finance operations without subordinate financial support’ and ‘comparability with other similar entities which autonomously finance themselves without subordinated support’. We believe that the "at risk test" should only be a numeric test to iron out misinterpretations and gain relevance in consistency. FASB introduction of an exclusion sufficiency test to exclude variable interests for being classified as VIEs leaves, in our opinion, some uncertainties to the ‘participation in VIE design’ concept or to the ‘non significant interest’ one. This test, we believe, ought not to be a determinant factor, the level of polarisation of risk/reward of the consideration should instead be the sole paramount predictor for exclusion. As far as the conditions used to determine if the entity has sufficient equity to sustain its operations without financial support, the condition sine qua non of the minimum 10% of equity value over total assets, coupled with the triad of valuation methods proposed by FASB, should have been more stringent and concise in its ruling. In fact, these methods leave again interpretative flexibility about the inputs used to demonstrate sufficiency. From a thorough profit variability analysis the thesis compares how the responsibilities and efforts to cope with FIN 46/R requirements are distributed among VIE stakeholders, namely auditors, reporting enterprises, standard setters and regulators. This has been done comparing the use of CON 7 approach to the traditional cost of capital approach used in corporate finance. Furthermore, we have put in evidence that by implementing FIN 46/R VIEs entities tend naturally to overstate income variability valuations, being income streams discounted at Rf, heightening capital requirements. We would like to close by making a forecast on long-term developments that we envisage this Interpretation will bring forward, by starting to think on which are the VIEs stakeholders that are bound to be the most disadvantaged. This is again the class of primary beneficiaries of smaller sizes, which will have either to recourse to more lending to cover for capitalisation requirements and increased financial leverage, or face financial distress. Both cases are precursors to industry consolidation and forebears of globalisation, while the class most favoured will be the banking industry.
RIASSUNTO (ITALIAN): L’introduzione del FIN 46/R (FASB Interpretazione N. 46/R) da parte del FASB (Financial Accounting and Standards Board) si è dimostrata rivoluzionaria grazie al nuovo modello di consolidamento che si interpone tra il contesto economico finanziario e quello legale delle entità oggetto di questa interpretazione. Forma legale e relativi accordi tra stakeholders delle entità, definite come qualsiasi forma legale di impresa e veicolo finanziario, devono d’ora in poi essere confrontati con un’analisi della variabilità attesa degli utili prima di identificare quale stakeholder debba consolidare l’entità in oggetto (beneficiario primario). Di conseguenza il concetto di variabilità (varianza) dei redditi acquista un peso determinante nella definizione di variable interest entity (VIE) con conseguenze che devono essere ancora completamente digerite da professionisti e imprese che devono adeguarsi a questa interpretazione contabile. In virtù della stessa il consolidamento da parte del portatore di interessi che assorbe la maggioranza delle perdite attese ora avrà la precedenza perfino sull’azionista o sulla controllante che dovesse detenere la maggioranza assoluta dei diritti di voto. Questa rivoluzione è stata per ora intesa per un vasto, ma selezionato, insieme di classi di imprese, essendo ad esempio SPV di assicurazioni vita e veicoli finanziari di enti governativi a scopo di lucro lasciati (per ora) fuori dall’ambito di questa interpretazione. Il consolidamento attraverso il modello variable interest (VI) è il risultato di quattro passi. Innanzitutto, la definizione di entità comprendente qualsiasi forma legale intesa a compiere un’attività economica o a possedere degli attivi. Secondariamente l’identificazione dei cosiddetti interessi variabili nell’entità precedentemente definita; questi VI derivano dall’identificazione dell’aggregato dell’entità in analisi il cui fair value muta di valore al variare del valore dei net assets dell’entità al netto degli stessi interessi variabili. Le variazioni del fair value di questi asset sono considerate indipendentemente dai diritti di voto a loro associati, quindi forme ibride di capitale azionario quali azioni privilegiate, mezzanini e altri strumenti affini devono avere chiaramente dettagliate le loro caratteristiche prima di poter analizzare il loro comportamento e poter prendere una decisione. Terzo punto, la stima della variabilità attesa degli utili (perdite potenziali attese e utili residui attesi) della VIE la cui rilevanza ai fini della teoria del valore è stata data ampia trattazione in questa tesi. Quarto e ultimo passo, l’identificazione del beneficiario primario, quando questo esista, definito come la parte che assorbe la porzione maggiore di perdite e/o beneficia maggiormente degli utili residui e che, in ultima analisi, deve consolidare l’entità a interesse variabile in oggetto. Altrimenti la VIE è considerata tale da distribuire sufficientemente il rischio tra gli stakeholder. Attraverso il processo di consolidamento il concetto di ‘capitale azionario a rischio’ (Equity at risk) è introdotto da FASB per definire la frazione del capitale azionario che assorbe effettivamente la variabilità creata dal capitale investito netto (Net Assets) della VIE. Nonostante un apposito test (condizione sufficiente) sia stato proposto da FASB alcune difficoltà interpretative sono ancora presenti. Queste sono dovute ad una serie di deduzioni dal capitale legale che deve essere dedotto di pagamenti per servizi, prestiti o garanzie degli stessi. Azioni emesse in cambio di interessi subordinati in altre VIE dovranno altresì essere dedotti dal totale dell’Equity at Risk, così pure per gli investimenti di valore cosiddetto trascurabile (non-significant). Tutte le valutazioni al riguardo devono essere fatte al fair value, quindi i valori contabili dovranno sempre fare spazio all’analisi finanziaria dando rilevanza ai fini del valore a questa interpretazione. Il concetto di ‘equity at risk’ è il risultato di deduzioni prese da entrambi i lati dello stato patrimoniale. Particolare attenzione è richiesta nella valutazione delle garanzie e altri obblighi fuori bilancio. Questa tesi prende in considerazione anche il test proposto da FASB per valutare gli investimenti trascurabili (non-significant) proponendone uno alternativo che, secondo il nostro giudizio, ne riduce la varianza interpretativa in ambito di redazione del bilancio. Da questa analisi sugli asset e sulla struttura finanziaria, in accordo con i concetti CON 6, FASB correttamente smonta la nozione di controllo ereditata dall’attuale contabilità separando la capacità di prendere decisioni di gestione della VIE da obblighi e diritti di assorbimento della variabilità dei risultati economici della stessa. La prima è data dalle decisioni sulla struttura finanziaria e da quelle in merito agli investimenti nel capitale investito, la seconda dettata dagli obblighi di ricapitalizzare le perdite e di ricevere utili residui. All’atto del consolidamento gli elementi di stato patrimoniale della VIE vengono misurati al fair value mentre quelli che già sono di pertinenza del beneficiario primario con precedente ruolo di controllante (Parent Company) rimangono iscritte a bilancio al valore di carico essendo già parte del bilancio. In questo modo FIN 46/R permette il riconoscimento di un avviamento (goodwill) all’acquisizione di una VIE che si possa considerare come un’impresa ai fini di questa interpretazione. Se invece il prezzo corrisposto per l’interesse acquisito (valore di carico +/- premium/discount) è inferiore al fair value dei suoi net assets per effetto del consolidamento si dovrà registrare una diminuzione di valore degli asset appena consolidati. Eccezion fatta per cassa, crediti di imposta, fondi TFR e simili. In questo caso VIE che non sono assimilabili ad imprese origineranno conseguentemente una perdita (o utile) straordinaria, in caso di utile straordinario il valore del nuovo asset acquisito è aumentato pro-quota. Mente i principi di valutazione del FIN 46/R che riguardano la definizione di valori di bilancio originatisi dal consolidamento della VIE, risiedono interamente nel fair value, a professionisti e imprese è richiesto invece di basare le loro previsioni di variabilità degli utili su informazioni private, che quindi danno origine a valori di tipo entity-specific, comprensive dei piani aziendali in accordo con la strategia industriale adottata, che sono funzione dell’attuale posizionamento competitivo di settore. Questo è causa di problemi legati alla divulgazione di informazioni e indirettamente alla tracciabilità dei risultati. Parte del processo utilizzato per l’applicazione del VIE model passa per la stima della variabilità degli utili (Expected Lossess, Expected Residual Returns, EXLS/EXRR) e per la verifica dell’esistenza o meno del beneficiario primario. La stima è il frutto di un’analisi di variabilità (varianza) dei redditi attraverso l’uso di DCF (discounted cash flow models). Per fare chiarezza su questo punto abbiamo prima rivisitato alcuni aspetti delle serie di variabili aleatorie con l’obiettivo di caratterizzare il contesto teorico a corredo della stima del reddito/utile atteso della VIE. VIE possono essere generalmente modellizzate come una variabile aleatoria con una media statistica in generale diversa dalla moda statistica, un fatto omesso in alcuni passaggi dell’esposizione del FIN 46/R che può portare ad incertezze in fase implementativa dell’interpretazione. Successivamente abbiamo sottolineato che la variabilità dei redditi è direttamente connessa all’intervallo di confidenza fissato per le funzioni di distribuzione rappresentanti variabili aleatorie durante il calcolo della variabilità attesa della VIE. Il potenziale impasse si potrebbe allargare qualora differenti stakeholders dovessero usare un modello di stima diverso della VIE che potrebbe portare a risultati, seppur diversi, ugualmente accettabili secondo le prescrizioni di questa interpretazione. L’introduzione di definizioni quali EXLS/EXRR, precedentemente non parte dei principi US GAAP, crediamo necessitino di una più robusta trattazione teorica. Per fare questo abbiamo caratterizzato anche la scelta del saggio di sconto che FASB indica come il tasso privo di rischio. In questo contesto abbiamo preso come base la teoria del costo del capitale per poi evidenziare i punti deboli e quelli di forza di alcuni metodi quali l’equivalente certo, il metodo del costo del capitale e quello della probabilità corretta per il rischio (risk adjusted probability). Abbiamo quindi dato evidenza alle ragioni per cui FASB dovrebbe usare il metodo del costo del capitale che è dato dal tasso di sconto impiegato per calcolare la variabilità del reddito derivante dall’attualizzazione dei flussi di reddito. Infatti, usando il metodo del costo del capitale, il WACC derivante dall’implementazione del CAPM sconta tutto il rischio finanziario nel tasso, lasciando all’impresa libertà di esprimere nei libri contabili, e quindi nei flussi di reddito corrispondenti, il rischio operativo che è invece affine all’attività di impresa e reporting. Al giorno d’oggi il costo marginale del debito e il valore di mercato del capitale azionario sono concetti consolidati nella pratica contabile e possono essere estesi a imprese private. Il costo del capitale per queste ultime deriva dall’uso del coefficiente di correlazione degli utili d’impresa su quelli di mercato (coefficiente beta) di difficile stima per aziende private, sebbene questo possa essere ricavato in più di un modo, implementando ipotesi che sono proprie del contesto dove l’impresa e i suoi concorrenti operano. Abbiamo riassunto i modelli emergenti dal modo come queste metodologie vengano correntemente impiegate dalle imprese americane, realizzando che i sentimenti connessi all’adattamento dell’interpretazione FIN 46/R alle caratteristiche proprie dell’impresa siano di timore e incertezza dati da una notevole difficoltà di applicazione compresa quella di estrapolare un sufficiente grado di rilevanza ai fini del valore dai propri eventi contabili. La situazione é prodroma di processo ancora lontano dalla cristallizzazione. In particolare FASB non impone una chiara conversione dei valori contabili in fair value oppure in value in use. Nemmeno sono esclusi metodi alternativi di valutazione a quelli menzionati di sopra se non fosse per alcuni aspetti trattati dall’FSP 46/R-S nell’esercizio di determinare la variabilità attesa degli utili che dobbiamo riconoscere non è stata propria della contabilità fino a poco tempo fa. Per entrare in dettaglio nel processo applicativo di identificazione di una VIE questa tesi propone un algoritmo che entra in dettaglio nell’applicazione del FIN 46/R da parte di un’impresa e tiene in considerazione tutte le possibili interrelazioni tra portatori di interessi nella VIE e/o solamente in specifici asset della stessa. L’algorimo pone in luce le debolezze sul piano applicativo causate da possibili interrelazioni tra la stima delle perdite attese e interessi in asset specifici, laddove il fair value di questi sia superiore al 50% del capitale investito netto. L’algoritmo, nonostante sia in accordo con le prescrizioni dettate dal FIN 46/R, essendo di tipo causa-effetto non affronta situazioni di cross-default di parti correlate con investimenti nella stessa VIE. Benchè l’applicazione di un modello causa-effetto non sia sempre possibile, pensiamo che un aumento dei vincoli che portano al consolidamento riduca ampiamente queste possibilità di difficile modellizzazione. Nel processo per la determinazione se l’impresa sia o meno una VIE, FASB sviluppa un test ‘at-risk’ che contiene a nostro avviso alcuni passi nella propria trattazione di relativa debolezza quali ‘precedente abilita a finanziare le attività senza supporto finanziario subordinato’ e ‘ confrontabilità con simili entità che autonomamente si finanziano senza supporto finanziario subordinato’. Crediamo che questo test ‘at-risk’ dovrebbe essere solamente un test di tipo numerico per appianare qualsiasi fonte di erronea interpretazione ed incrementarne quindi la rilevanza e consistenza. L’introduzione di FASB di una condizione sufficiente da applicare ad una entità per la sua esclusione dalla categoria delle VIE lascia a nostro avviso alcune incertezze nell’interpretazione del concetto di ‘partecipazione nella definizione della VIE’ o in quella di ‘interesse trascurabile’. Questo test crediamo non debba essere trattato come un fattore determinante; la polarizzazione tra rischio e rendimento invece crediamo debba essere il fattore primario per l’esclusione o meno. Per quanto riguarda le condizioni in uso per determinare se l’entità ha sufficiente capitale per sostenere le proprie attività senza sostegno finanziario, conditio sine qua non del 10% di equity sul capitale investito netto, accoppiata ad una triade di metodi valutativi sempre proposti da FASB, pensiamo avesse dovuto essere maggiormente concisa e vincolante nelle sue pronunciazioni. Infatti siamo dell’opinione che questi metodi lascino troppa flessibilità interpretativa circa l’uso delle ipotesi concesse per dimostrare la sufficienza del capitale investito. Questi temi sono stati trattati dal punto di vista operativo con una serie di esempi creati ad hoc per illustrare i passi più significativi, dal punto di vista finanziario, nell’applicazione del VIE model e sollevare potenziali criticità proponendone una loro soluzione. Infine, questa tesi confronta come le responsabilità e gli sforzi nell’affrontare le disposizioni del FIN 46/R siano distribuite tra gli stakeholders di una VIE, cioè imprese che redigono il bilancio, parti correlate, revisori, standard setters ed enti di controllo. Abbiamo messo in evidenza come l’implementazione del FIN 46/R spinga naturalmente ad una sovrastima della variabilità stimata degli utili, innalzando i requisiti di capitalizzazione in accordo con questo modello di rischio/rendimento. Questo a svantaggio di beneficiari primari di modeste capitalizzazioni, che dovranno affrontare sia il rischio di essere acquisiti che quello di un maggiore ricorso al debito. Le classi più avvantaggiate saranno invece il settore del credito, seppure lo stesso sarà portato internamente verso il consolidamento.
XXI Ciclo
1972

The Financial Accounting Standards Board (FASB) issued Interpretation No. 46 (FIN 46), Consolidation of Variable Interest Entities – An Interpretation of ARB No. 51, in January 2003 and revised it in December 2003, with the objective to improve the transparency of financial information. Under FIN 46, companies are required to consolidate variable interest entities (VIEs) on financial statements if they are the primary beneficiaries of the VIEs. This dissertation empirically examines whether the implementation of this new financial reporting guidance affects firms’ accruals quality and investment efficiency. A manually collected sample comprised of firms affected by FIN 46 and firms disclosing no material impact from FIN 46 is used in the empirical analyses.The first part of the dissertation investigates the effects of FIN 46 on accruals quality. By using different accrual quality measures in prior studies, this study found that firms affected by FIN 46 experienced a decrease in accrual quality compared to firms reporting no material impact from FIN 46. Among the firms affected by FIN 46, firms consolidating VIEs were compared with firms terminating or restructuring VIEs. The accruals quality of firms consolidating VIEs was found to be lower than that of firms terminating or restructuring VIEs. These results are consistent in tests using alternative control samples.The second part of this dissertation examines the effects of FIN 46 on investment efficiency. Mixed results were found from using two different proxies used in prior literature. Using the investment-cash flow sensitivity to proxy for investment efficiency, firms affected by FIN 46 experienced a decrease in investment efficiency compared to firms reporting no material impact. It was also found that higher investment-cash flow sensitivity for firms consolidating VIEs during post-FIN 46 periods compared to both the no-impact firms and the matched pair control sample. Contrasting results were found when the deviation from expected investment is used as another proxy for investment efficiency. Empirical analyses show that FIN 46 firms experienced improved investment efficiency measured by the deviation from expected investment after their adoption of FIN 46. This study also provides explanations for the opposite results from the two different proxies.

Thesis (Ph.D.)--University of Cincinnati, 2009.
Advisor: P.K. Sen. Title from electronic thesis title page (viewed July 27, 2009). Keywords: Fin 46R; consolidation; disclosure; variable interest entities. Includes abstract. Includes bibliographical references.