GEN COMBO ADVANCED ACCOUNTING; CONNECT ACCESS CARD
GEN COMBO ADVANCED ACCOUNTING; CONNECT ACCESS CARD
13th Edition
ISBN: 9781260087383
Author: Joe Ben Hoyle
Publisher: McGraw-Hill Education
Question
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Chapter 6, Problem 1Q
To determine

Explain the term variable interest entity (VIE).

Expert Solution & Answer
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Answer to Problem 1Q

A legal business structure is known as variable interest entity when an investor has interest which is controlled even when not have majority of voting rights.

Explanation of Solution

A legal business structure is known as variable interest entity when an investor has interest which is controlled even when not have majority of voting rights. Commonly VIE activities includes leasing, financial assets, research and development, hedging financial instruments, and other arrangements transfers. Primary beneficiary is a term which is used to designate that party having control over VIE’s financial interest.

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Chapter 6 Solutions

GEN COMBO ADVANCED ACCOUNTING; CONNECT ACCESS CARD