To help you become familiar with the accounting standards, this case is designed to take you to
Question:
To help you become familiar with the accounting standards, this case is designed to take you to the FASB’s Web site and have you access various publications. Access the FASB’s Web site at http://www.fasb.org. Click on “Pronouncements & EITF Abstracts.”
In this chapter, we have discussed off-balance-sheet financing and recent changes in the accounting for one of the more common methods of off-balance-sheet financing, variable interest entities. For this case, we will use Interpretation 46(R), “Consolidation of Variable Interest Entities—An Interpretation of ARB No. 51.” Open FIN 46(R).
1. Read paragraph 2. What does the term variable interests mean?
2. Read paragraph 23. What additional disclosure is required by the primary beneficiary of a variable interest entity?
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen