CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

If variable interests predominate over voting interests,

A. The primary beneficiary should consolidate the controlled entity.
B. The equity investor should consolidate the controlled entity.
C. The financial statements of the entity should not be combined with those of other entities'.
Correct Answer: A

In this case the entity is a VIE and therefore subject to consolidation.

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