CNS AR24 Digital - Book - Page 72
COHEN & STEERS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS4(Continued)
In November 2024, the FASB issued ASU 2024-03, Income Statement 4 Reporting Comprehensive Income 4 Expense
Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The standard requires
disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial
statements. This new guidance will be effective on January 1, 2027 for annual reporting and January 1, 2028 for interim
reporting. The Company is currently evaluating the impact that the adoption of this new standard will have on the Company's
consolidated financial statements and related disclosures.
Consolidation of Investment Vehicles4The Company's financial interests in investment vehicles, including the
management fees that are received, are evaluated at inception and thereafter, if there is a reconsideration event, in order to
determine whether to apply the Variable Interest Entity (VIE) model or the Voting Interest Entity (VOE) model.
A VIE is an entity in which either the equity investment at risk is not sufficient to permit the entity to finance its own
activities without additional financial support or the group of holders of the equity investment at risk lack certain
characteristics of a controlling financial interest. The primary beneficiary is the entity that has the power to direct the
activities of the VIE that most significantly affect its performance, and the obligation to absorb losses of the entity or the right
to receive benefits from the entity that could potentially be significant to the VIE. Subscriptions and redemptions or
amendments to the governing documents of the respective entities could affect an entity's status as a VIE or the determination
of the primary beneficiary. Limited partnerships and similar entities are determined to be a VIE generally when the Company
is the general partner and the limited partners do not hold substantive kick-out or participation rights. The Company assesses
whether it is the primary beneficiary of any VIEs identified by evaluating its economic interests in the entity held either
directly by the Company and its affiliates or indirectly through employees. VIEs for which the Company is deemed to be the
primary beneficiary are consolidated.
Investments that are determined to be VOEs are consolidated when the Company9s ownership interest is greater than
50% of the outstanding voting interests of the vehicle.
The Company records noncontrolling interests in consolidated funds for which the Company9s ownership is less than
100%.
Cash and Cash Equivalents4Cash and cash equivalents include short-term, highly liquid investments, which are
readily convertible into cash.
Due from/to Brokers4The Company, including the consolidated funds, may transact with brokers for certain
investment activities. The clearing and custody operations for these investment activities are performed pursuant to
contractual agreements. The due from/to brokers balances represent cash and/or collateral balances at brokers/custodians and/
or receivables and payables for unsettled securities transactions with brokers/custodians.
Investments4Management of the Company determines the appropriate classification of its investments at the time of
purchase and re-evaluates such determination no less than quarterly. The Company's investments are categorized as follows:
" Equity investments at fair value generally represent common stocks, limited partnership interests, exchangetraded preferred securities, and seed investments in Company-sponsored vehicles including its Non-Traded
REIT.
" Trading investments generally represent U.S. Treasury securities, over-the-counter preferred securities and
investment-grade corporate debt securities.
The Company has elected the fair value option for a seed investment that otherwise would have been accounted for
using the equity method of accounting. Distributions from this seed investment are recorded in interest and dividend income
4net in the Company's consolidated statements of operations when earned.
Gains and losses on the Company's investments, including those for which the fair value option has been elected, are
recorded in gain (loss) from investments4net in the Company's consolidated statements of operations.
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