Consolidation of variable interest entities

Assignment Help Finance Basics

Reference no: EM1359410

Financial Interpretation No. 46R, "Consolidation of Variable Interest Entities," references several of the FASB Concepts Statements in motivating the need to identify and consolidate variable interest entities. FIN 46R also expands the traditional definition of control as provided in Accounting Research Bulletin 51, "Consolidated Financial Statements." Review the Summary to FIN 46R and explain the following:
-In what ways do the conclusions in FIN 46R relate to the concepts of relevance and reliability?
-How do the defintions of assets and liabilities relate to the consolidation of VIE's?
-Why is a majority voting interest insufficient evidence of a controlling financial interest in a VIE?

Reference no: EM1359410

Questions Cloud

Lojeski''s virtual distance leadership model : Describe how leaders can use structure to shape the culture, ethical values, and build trust in co-located and in virtual organizations

What were most important things cisco managers did right : What were the most important things Cisco managers did right, i.e., where had the ERP team been "smart'? How did Cisco manage unanticipated problems?

Individual diversity and conflict management : How does individual diversity and conflict management relate to teamwork? Diversity could also include a difference in personality types and learning styles.

Taxation and corporation taxes : Betsy receives a salary of $50,000 from her employer (a retail clothing store) and several fringe benefits. Her employer pays premiums of $300 for her $40,000 group term life insurance coverage and pays $2,400 for medical insurance premiums.

Consolidation of variable interest entities : Financial Interpretation No. 46R, "Consolidation of Variable Interest Entities," references several of the FASB Concepts Statements in motivating the need to identify and consolidate variable interest entities.

Calculate the discount rate : A stock sells for $40. The next dividend will be $4 per share. If the rate of return earned on reinvested funds is 15% and the company reinvests 40% of earnings in the company.

Consequences of improper use of standard costs : There are several potential problems that can occur from the improper use of standard costs. Labor quantity standards and efficiency variances assume that production is labor-paced.

Followership behaviors : How would you say these behaviors had led to effective or ineffective leadership within and organization

Consequences for the individual and society : Discuss the issue of substance addiction in terms of consequences for the individual and society.

User Account

All Pages