Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 11

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.