Question: Variable interest entity (VIE) qualifying conditions include which of the following? Obligation to absorb losses of the variable interest entity (VIE) At-risk equity is not
Variable interest entity (VIE) qualifying conditions include which of the following? Obligation to absorb losses of the variable interest entity (VIE) At-risk equity is not enough to allow the entity to finance activities without supplemental financial support provided by other parties, but including equity holders. Typically, at-risk equity is less than 25% of total assets Lack of right to receive residual returns Right to receive residual returns
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