The Implied Value of a Special Purpose Entity (SPE) at Acquisition

question 33

Multiple Choice

The implied value of a special purpose entity (SPE) at acquisition under Canadian GAAP is equal to:

• A) the fair value of SPE.
• B) the fair value of the non-controlling interest of the SPE.
• C) the book value of the SPE.
• D) the fair value of the consideration paid by the primary beneficiary to the owners of the business plus the fair value of the non-controlling interest of the SPE.

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Definitions:

Somatic

Related to the body, especially as distinct from the mind or emotions.

Peripheral

Referring to the outer boundary or located away from the central part; in physiology, it often relates to nerves and structures outside the brain and spinal cord.

Sympathetic

Relating to, producing, or denoting responses in a part of the body as a result of action in another, particularly in the context of the autonomic nervous system's response to stress.

Lesioning

A technique in neuroscience and psychology involving damage or removal of specific areas of the brain to study their functions.