Example of Substance Over Form: Variable Interest Entity
Not what you're looking for?
An enterprise that holds a variable interest in a variable interest entity (VIE) is required to consolidate the assets, liabilities, revenue, expense, and noncontrolling interest of that entity if: Explain:
A: The Vie has issued no voting stock.
B: The variable interest held by the enterprise involves a lease.
C: The enterprise has a controlling financial interest in the VIE.
D: Other equity interest in the VIE have the obligation to absorb the expected losses of the VIE.
Purchase this Solution
Solution Summary
The solution answers a question about a variable interest entity (VIE).
Solution Preview
C: The enterprise has a controlling financial interest in the VIE.
This ...
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.