Question 1

If the VIE was not a business as deﬁned by ASC 819-10-20 which means it is likely a not for proﬁt entity, there is no goodwill recorded.​

Accepted Answer

A) True 
 B)False

Question 2

The consolidation process for VIE's includes the elimination of all inter-entity transactions as would be the case for control based on stock ownership​

Accepted Answer

A) True 
 B)False

Question 3

Consolidation procedures are applied to controlling ownership interests in Variable Interest Entities.​

Accepted Answer

A) True 
 B)False

Question 4

The primary beneficiary does not consolidate its interest in a VIE into their consolidated financial statements.

Accepted Answer

A) True 
 B)False  False

Question 5

The primary beneﬁciary will likely record its share of VIE interest revenue on its books.​

Accepted Answer

A) True 
 B)False  True

Question 6

The entity having control of a VIE is referred to as the parent company.​

Accepted Answer

A) True 
 B)False

Question 7

The accounts of the VIE are adjusted to fair value on the date control is achieved.​

Accepted Answer

A) True 
 B)False  True

Question 8

Income of the consolidated company is distributed based on contractual terms, not the Primary Company ownership of VIE common stock.​

Accepted Answer

A) True 
 B)False

Question 9

The primary beneﬁciary has control of the variable interest entity (VIE) based on its power to control the activities of the VIE and the obligation to absorb losses and receive beneﬁts from the VIE.​

Accepted Answer

A) True 
 B)False

Question 10

In a VIE, the majority of losses or income ﬂow to the primary beneﬁciaries, not the residual interest shareholders shareholder.The distribution of income is not based on common stock ownership.Instead, it is based on contractual agreements that could include interest on loans, management fees or a deﬁned percentage of revenue or income.

Accepted Answer

A) True 
 B)False

Exam 24: Variable Interest Entities

If the VIE was not a business as deﬁned by ASC 819-10-20 which means it is likely a not for proﬁt entity, there is no goodwill recorded.

Correct Answer
verified

The consolidation process for VIE's includes the elimination of all inter-entity transactions as would be the case for control based on stock ownership

Correct Answer
verified

Consolidation procedures are applied to controlling ownership interests in Variable Interest Entities.

Correct Answer
verified

The primary beneficiary does not consolidate its interest in a VIE into their consolidated financial statements.

Correct Answer
verified
False

The primary beneﬁciary will likely record its share of VIE interest revenue on its books.

Correct Answer
verified
True

The entity having control of a VIE is referred to as the parent company.

Correct Answer
verified

The accounts of the VIE are adjusted to fair value on the date control is achieved.

Correct Answer
verified
True

Income of the consolidated company is distributed based on contractual terms, not the Primary Company ownership of VIE common stock.

Correct Answer
verified

The primary beneﬁciary has control of the variable interest entity (VIE) based on its power to control the activities of the VIE and the obligation to absorb losses and receive beneﬁts from the VIE.

Correct Answer
verified

Correct Answer
verified

Exam 24: Variable Interest Entities

If the VIE was not a business as deﬁned by ASC 819-10-20 which means it is likely a not for proﬁt entity, there is no goodwill recorded.​

Correct AnswerverifiedShow Answer

The consolidation process for VIE's includes the elimination of all inter-entity transactions as would be the case for control based on stock ownership​

Correct AnswerverifiedShow Answer

Consolidation procedures are applied to controlling ownership interests in Variable Interest Entities.​

Correct AnswerverifiedShow Answer

The primary beneficiary does not consolidate its interest in a VIE into their consolidated financial statements.

Correct AnswerverifiedFalse

The primary beneﬁciary will likely record its share of VIE interest revenue on its books.​

Correct AnswerverifiedTrue

The entity having control of a VIE is referred to as the parent company.​

Correct AnswerverifiedShow Answer

The accounts of the VIE are adjusted to fair value on the date control is achieved.​

Correct AnswerverifiedTrue

Income of the consolidated company is distributed based on contractual terms, not the Primary Company ownership of VIE common stock.​

Correct AnswerverifiedShow Answer

The primary beneﬁciary has control of the variable interest entity (VIE) based on its power to control the activities of the VIE and the obligation to absorb losses and receive beneﬁts from the VIE.​

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If the VIE was not a business as deﬁned by ASC 819-10-20 which means it is likely a not for proﬁt entity, there is no goodwill recorded.

Correct Answer
verified

The consolidation process for VIE's includes the elimination of all inter-entity transactions as would be the case for control based on stock ownership

Correct Answer
verified

Consolidation procedures are applied to controlling ownership interests in Variable Interest Entities.

Correct Answer
verified

Correct Answer
verified
False

The primary beneﬁciary will likely record its share of VIE interest revenue on its books.

Correct Answer
verified
True

The entity having control of a VIE is referred to as the parent company.

Correct Answer
verified

The accounts of the VIE are adjusted to fair value on the date control is achieved.

Correct Answer
verified
True

Income of the consolidated company is distributed based on contractual terms, not the Primary Company ownership of VIE common stock.

Correct Answer
verified

The primary beneﬁciary has control of the variable interest entity (VIE) based on its power to control the activities of the VIE and the obligation to absorb losses and receive beneﬁts from the VIE.

Correct Answer
verified

Correct Answer
verified