FUNDAMENTS OF ADV. ACCOUNTING W/CODE
FUNDAMENTS OF ADV. ACCOUNTING W/CODE
7th Edition
ISBN: 9781260220889
Author: Hoyle
Publisher: MCGRAW-HILL CUSTOM PUBLISHING
bartleby

Concept explainers

Question
Book Icon
Chapter 6, Problem 1Q
To determine

Explain the term variable interest entity (VIE).

Expert Solution & Answer
Check Mark

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education