All Companies Holding a Significant Interest in a Variable Interest

question 48

True/False

All companies holding a significant interest in a variable interest entity (VIE)must disclose the nature,purpose,size and activities of the VIE in the consolidated statements.

---

Definitions:

Partisanship

The strong support for a specific political party or agenda, often leading to a reluctance to compromise with political opponents.

Interest Group

An organization that advocates for the shared interests of its members, aiming to influence public policy and decision-making.

Government Policy

A course of action or principle adopted or proposed by a government body or leader.

Free-Rider Problem

A situation in which individuals benefit from resources, goods, or services without paying for them, leading to under-provision or depletion of those resources.