What Was the Original Motivation by FASB on SPEs

question 55

Multiple Choice

What was the original motivation by FASB on SPEs?

• A) To establish a mechanism to encourage companies to invest in needed assets while keeping related debt of its books
• B) To keep the large amount of debt off the books
• C) To sell non-producing assets to the SPE
• D) To select which assets to sell to the SPEs affecting the gain