BIOF » Topics » Principles of Consolidation and Minority Interest

This excerpt taken from the BIOF 10-K filed Mar 30, 2009.

Principles of Consolidation and Minority Interest

        The accompanying consolidated financial statements include the Company, the LLC and its wholly owned subsidiaries: BFE Holding Company, LLC; BFE Operating Company, LLC; Buffalo Lake Energy, LLC; and Pioneer Trail Energy, LLC. All inter-company balances and transactions have been eliminated in consolidation.

        At December 31, 2008, the Company owned 69.1% of the LLC units. The remaining 30.9% of the LLC units owned by the historical equity investors will continue to be reported as minority interest until all Class B common shares and LLC membership units have been exchanged for the Company's common stock.

This excerpt taken from the BIOF 10-Q filed Nov 14, 2008.

Principles of Consolidation and Minority Interest

 

The accompanying consolidated financial statements include the Company, the LLC and its wholly owned subsidiaries or entities consolidated under the provisions of Financial Accounting Standards Board (“FASB”) Interpretation No. 46, as revised, Consolidation of Variable Interest Entities (“FIN 46R”): BFE Holding Company, LLC; BFE Operating Company, LLC; Buffalo Lake Energy, LLC; and Pioneer Trail Energy, LLC. All inter-company balances and transactions have been eliminated in consolidation.

 

FIN 46R addresses the consolidation of certain business entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties (“variable interest entities”). Variable interest entities are required to be consolidated by their primary beneficiaries. The Company has determined that the LLC is a variable interest entity, and pursuant to FIN 46R, the Company has determined that it is the primary beneficiary. The Company has therefore consolidated the LLC.

 

At September 30, 2008, the Company owned 46.9% of the LLC units.  The remaining 53.1% of the LLC units owned by the historical equity investors will continue to be reported as minority interest until all Class B common shares and LLC membership units have been exchanged for the Company’s common stock.

 

This excerpt taken from the BIOF 10-Q filed Aug 14, 2008.

Principles of Consolidation and Minority Interest

 

The accompanying consolidated financial statements include the Company and the Operating Company and its wholly owned subsidiaries or entities consolidated under the provisions of Financial Accounting Standards Board (“FASB”) Interpretation No. 46, as revised, Consolidation of Variable Interest Entities (“FIN 46R”): BFE Holding Company, LLC; BFE Operating Company, LLC; Buffalo Lake Energy, LLC; and Pioneer Trail Energy, LLC. All inter-company balances and transactions have been eliminated in consolidation.

 

FIN 46R addresses the consolidation of certain business entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties (“variable interest entities”). Variable interest entities are required to be consolidated by their primary beneficiaries. The Company has determined that the Operating Company is a variable interest entity, and pursuant to FIN 46R, the Company has determined that it is the primary beneficiary. The Company has therefore consolidated the Operating Company.

 

At June 30, 2008, the Company owned 46.9% of the Operating Company units.  The minority interest ownership will continue to be reported until all Class B common shares and Operating Company membership units have been exchanged for the Company’s common stock.

 

This excerpt taken from the BIOF 10-Q filed May 13, 2008.

Principles of Consolidation and Minority Interest

 

The accompanying consolidated financial statements include the Company and the Operating Company and its wholly owned subsidiaries or entities consolidated under the provisions of Financial Accounting Standards Board (“FASB”) Interpretation No. 46, as revised, Consolidation of Variable Interest Entities (“FIN 46R”): BFE Holding Company, LLC; BFE Operating Company, LLC; Buffalo Lake Energy, LLC; and Pioneer Trail Energy, LLC. All inter-company balances and transactions have been eliminated in consolidation.

 

FIN 46R addresses the consolidation of certain business entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties (“variable interest entities”). Variable interest entities are required to be consolidated by their primary beneficiaries. The Company has determined that the Operating Company is a variable interest entity, and pursuant to FIN 46R, the Company has determined that it is the primary beneficiary. The Company has therefore consolidated the Operating Company.

 

Prior to its initial public offering, the Company owned 28.9% of the Class A Units of the Operating Company.  At March 31, 2008, the Company owned 46.8% of the Operating Company units.  The minority interest ownership will continue to be reported until all Class B common shares and Operating Company membership units have been exchanged into the Company’s common stock.

 

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