Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

Exercise 35

An enterprise that holds a variable interest in a variable interest entity (VIE) is required to consolidate the assets, liabilities, revenues, expenses, and noncontrolling interest of that entity if:
A)The VIE has issued no voting stock.
B)The variable interest held by the enterprise involves a lease.
C)The enterprise has a controlling financial interest in the VIE.
D)Other equity interests in the VIE have the obligation to absorb the expected losses of the VIE.