Question

when is a firm required to consolidate the financial statements of a VIE with its own...

when is a firm required to consolidate the financial statements of a VIE with its own financial Statements?

a. if it can exercise financial control through its role as a primary beneficiary.

b. if it can exert financial influence through its role as a non beneficiary.

c. if it owns considerable shares of another company .

d. whenever the government notice an attempt to defraud.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans:

VIE means Virtual interest entity. A firm is required to consolidate the financial statements of a VIE with its own financial Statements when it can exercise financial control through its role as a primary beneficiary. A VIE is such an entity in which the person who invests may not have majority of shareholding but have a controlling interest over the Entity. Controlling interest means able to finance in case of requirements, to conduct research on behalf of investor firm. VIE are mostly created to carry on some activities on behalf of the owing firm.

So Correct answer is option A.

For any query please ask in comment box, we are happy to help you. Also please don't forget to provide your valuable feedback. Thanks!

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
19.   Under to PSA 260, those matters that arise from the audit of financial statements and...
19.   Under to PSA 260, those matters that arise from the audit of financial statements and in the opinion of the auditor, are both important and relevant to those charged with governance in overseeing the financial reporting and disclosure process are called a.   Audit matters of governance interest b.   Significant audit matters c.   Auditor findings d.   Material misstatement in the financial statements 20.   Audit matters of governance interest to be communicated to those charged with governance ordinarily include a.   Audit...
Telco Ltd. is a Danish telecom company that prepares consolidated financial statements in full compliance with...
Telco Ltd. is a Danish telecom company that prepares consolidated financial statements in full compliance with IFRS 10. The company has expanded dramatically in Central Asia in recent years by investing in three units: K-Mobe, U-Mobe, and T-Mobe, supplying cellular service to customers in Kazakhstan, Uzbekistan, and Tajikistan, respectively. page 155Telco’s corporate investment policy is to take majority ownership stakes in overseas subsidiaries when possible, but to accept lower levels of ownership when majority ownership is not possible or practical....
In a bizarre twist to a bizarre story, on October 22, 2013, Deloitte agreed to pay...
In a bizarre twist to a bizarre story, on October 22, 2013, Deloitte agreed to pay a $2 million penalty to settle civil charges—brought by the PCAOB—that the firm violated federal audit rules by allowing its former partner to continue participating in the firm’s public company audit practice, even though he had been suspended over other rule violations. The former partner, Christopher Anderson, settled with the PCAOB in 2008 by agreeing to a $25,000 fine and a one-year suspension for...
Select the statement that is untrue. The following factors in ASIC v Adler were taken into...
Select the statement that is untrue. The following factors in ASIC v Adler were taken into account when the court disqualified him as a director: a.Loss suffered by the shareholders. b.Dishonest conduct; c.Abuse of trust; d.His negotiation skills as a director; e.Loss suffered by the company; 1 points   QUESTION 2 Select the statement that is untrue. Remedies for breach of fiduciary duty are: a.Recission of contract. b.Constructive trust; c.Account for profits; d.Equitable compensation; e.Dejunction; 1 points   QUESTION 3 Are directors...
Case Abstract: Company ABC, an AE, constructor and construction management firm, recently assigned Bob Ironside to...
Case Abstract: Company ABC, an AE, constructor and construction management firm, recently assigned Bob Ironside to turn a major coal fired generating station project around. Currently at 36 percent construction completion, the project is shifting from an emphasis on civil and structural work to bulk production. Cooperation of the owner, the multi-prime contractors, and strong labor unions is cach vital for performance improvement. The analysis of this project involves: 1) identification of significant external influences on the project organization, 2)...
During the trial, lawyers for the accused said that the men believed that the accounting decisions...
During the trial, lawyers for the accused said that the men believed that the accounting decisions they made were appropriate at the time, and that the accounting treatment was approved by Nortel’s auditors from Deloitte & Touche. Judge Marrocco accepted these arguments. Marrocco added he was “not satisfied beyond a reasonable doubt” that the trio (i.e., Dunn, Beatty, and Gollogly) had “deliberately misrepresented” financial results. Given the facts of the case, do you believe Judge Marrocco’s decision was justified? Explain....
The case WorldCom On 9 June 2003, the US Bankruptcy Court of New York issued an...
The case WorldCom On 9 June 2003, the US Bankruptcy Court of New York issued an interim report (Thornburgh, 2003) which expanded on the Court’s earlier find- ings (Thornburgh, 2002) of lack of corporate gov- ernance, mismanagement and concern regarding the integrity of WorldCom’s accounting and fi- nancial reporting functions. Amongst the numer- ous incidents of mismanagement, corporate gov- ernance failure and accounting irregularities, the most salient related to the overstatement of re- ported profitability by inappropriately capitaliz- ing very...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
Discuss how the respective organizations’ relations with stakeholders could have potentially been affected by the events...
Discuss how the respective organizations’ relations with stakeholders could have potentially been affected by the events that took place at Enron and how the situation could have been dealt with differently to prevent further damage? THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT