Which of the Following Is True Regarding SIC 12,"Consolidation--Special Purpose

question 67

Multiple Choice

Which of the following is true regarding SIC 12,"Consolidation--Special Purpose Entities",and FIN 46R,"Consolidation of Variable Interest Entities"?

• A) Both pronouncements show evidence of being a principles-based standard.
• B) Both pronouncements state that the substance of the relationship between an entity and the variable-interest or special-purpose entity is the determining factor in deciding to consolidate a variable-interest or special-purpose entity.
• C) Both pronouncements state that the entity expected to bear the majority of the expected gains or losses of the variable-interest or special-purpose entity should consolidate the variable-interest or special-purpose entity.
• D) Both pronouncements state that technical voting control of an SPE is the determining factor in deciding to consolidate a variable-interest or special-interest entity.

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Definitions:

Attendance Policy

A set of rules or guidelines that specifies the expectations for attendance, including consequences of absence at a workplace or educational institution.

Registered Students

Individuals who have officially enrolled or signed up for classes or courses in an educational institution.

P Chart

A control chart used for monitoring the proportion of defectives in a manufacturing or business process over time.

Customer Complaints

Feedback or grievances expressed by customers about a product or service.