The Primary Beneficiary of a Variable Interest Enterprise

question 53

Multiple Choice

The primary beneficiary of a variable interest enterprise:

• A) must include the assets, liabilities, and results of the variable interest enterprise in its consolidated financial statements.
• B) can simply record income on a cash basis when dividends are received or income accrued.
• C) only recognizes a gain or loss on the sale of its interest in the variable interest enterprise.
• D) only includes the results of the variable interest enterprise if it has in excess of 50% of the voting share capital of the variable interest enterprise.

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Definitions:

Taboo

Culturally prescribed avoidances involving ritual prohibitions, which, if not observed, lead to supernatural punishment.

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The religion with the greatest number of followers or adherents worldwide at a given time.

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The overarching set of beliefs, values, and perceptions through which an individual or group interprets and understands the world around them.