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:

Plane Ticket

A document issued by an airline or a travel agency to confirm an individual's reservation for a specific flight.

Offering Available

Refers to the range of products or services that a company makes accessible to its customers.

Consumers

Individuals or organizations that use or intend to use goods and services generated within the economy.

Utility

The total satisfaction or benefit that a consumer receives from consuming a good or service.