BC34 An entity can be exposed to risks from both consolidated and unconsolidated structured entities. The Board concluded that it would help users of financial statements in understanding an entity's exposure to risks if the entity disclosed the terms of contractual arrangements that could require it to provide financial support to a consolidated structured entity, including events or circumstances that could expose the entity to a loss.
BC35 The Board concluded for the same reason that an entity should disclose its risk exposure from non‑contractual obligations to provide support to both consolidated and unconsolidated structured entities (see paragraphs BC102-BC106).
BC36 The Board noted that US generally accepted accounting principles (GAAP) require similar disclosures, which have been well received by users of financial statements in the US.