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The FASB Issued Interpretation No

question 18

Essay

The FASB issued Interpretation No.46 R related to the Consolidation of Variable Interest Entities.Describe what a Variable Interest Entity is and discuss why the FASB has difficulty in prescribing when these entities are consolidated.


Definitions:

Organizational Chart

A diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.

Midpoint Evaluations

Periodic assessments conducted halfway through a project, program, or academic term to review progress and adjust goals or methodologies as necessary.

End Evaluations

The assessments conducted at the conclusion of a project or term to review performance and outcomes.

Processing Method

A technique or procedure used to handle or manage information, materials, or products.

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