Per the textbook, some investors (e.g., Warren Buffet) have contended that the U.S. GAAP treatment undervalued the

Question:

Per the textbook, some investors (e.g., Warren Buffet) have contended that the U.S. treatment undervalued the parent's investment carrying value for post-control step acquisitions. Construct one (1) argument in which you provide at least two (2) reasons for the U.S. treatment of reporting additional investments in subsidiaries when the parent previously established control. Provide support for your rationale.
Determine the main characteristics of a variable interest entity (VIE). Evaluate the usefulness to investors of the inclusion of VIEs in the company's consolidated financial statements. Provide support for your rationale.
GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...