TAILIEUCHUNG - Lecture Advanced accounting (12/e): Chapter 6 - Joe B. Hoyle, Thomas F. Schaefer, Timothy S. Doupnik

Chapter 6 - Variable interest entities, intra-entity debt, consolidated cash flows, and other issues. After studying this chapter, you should be able to: Describe a variable interest entity, a primary beneficiary, and the factors used to decide when a variable interest entity is subject to consolidation; understand the consolidation procedures to eliminate all intra-entity debt accounts and recognize any associated gain or loss created whenever one company acquires an affiliate’s debt instrument from an outside party;. | Chapter Six Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Variable Interest Entities (VIE’s) Known as Special Purpose Entities (SPE) Established as a separate business structure Trust Joint Venture Partnership Corporation Frequently has neither independent management nor employees Typical purposes help finance their operations at favorable rates Transfers of financial assets Leasing Hedging financial instruments Research and development Off-balance sheet financing LO 1 6- Variable Interest Entities (VIE’s) Known as Special Purpose Entities (SPE) Established as a separate business structure Trust Joint Venture Partnership Corporation Frequently has neither independent management nor employees Typical purposes help finance their operations at favorable rates Transfers of financial assets Leasing Hedging financial instruments Research and development Off-balance sheet financing Variable Interest Entities FASB standard FIN 46R3 requires the primary beneficiary (regardless of their ownership) to consolidate the VIE. Who is the “primary beneficiary”? The firm that has the: Power to direct the activities of the VIE that significantly impact the entity’s economic performance. Obligation to absorb significant losses of the entity. Right to receive significant benefits of the entity. 6- Variable Interest Entities FASB standard FIN 46R3 requires the primary beneficiary (regardless of their ownership) to consolidate the VIE. Who is the “primary beneficiary”? The firm that has the: Power to direct the activities of the VIE that significantly impact the entity’s economic performance. Obligation to absorb significant losses of the entity. Right to receive significant benefits of the entity. Disclosure Requirements – In Footnotes of ALL VIE Interests Nature, purpose, size, & activities of the VIE Significant judgments made in determining .

• Kế toán - Kiểm toán
• Advanced accounting
• Lecture Advanced accounting
• Advanced financial accounting
• Financial statements
• Accounting valuation
• Variable interest entities
• Equity method of accounting
• International accounting diversity
• Accounting for legal reorganizations
• Accounting for state
• Accounting for leases
• Accounting for estates
• Investment accounting
• Consolidation of financial information
• Consolidated financial statements
• Intra entity asset transactions
• Income taxes
• Interim reporting
• Foreign currency transactions
• Foreign currency financial statements
• Exchange commission
• Partnership advantages
• Statement of liquidation