Variable interest entity:- When an investor has a controlling power over other entity but that control is not based on majority of voting rights, it is called as a variable interest entity. To explain: The characteristics normally examined in determining whether a company is a primary beneficiary of a variable interest entity.

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Chapter 3, Problem 3.12Q

To determine

Introduction:

Variable interest entity:-When an investor has a controlling power over other entity but that control is not based on majority of voting rights, it is called as a variable interest entity.

To explain:

The characteristics normally examined in determining whether a company is a primary beneficiary of a variable interest entity.

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