CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

The party that has the voting rights in a VIE is usually called:
A. equity investor.
B. primary beneficiary.
C. variable interest investor.
Explanation: Assets, liabilities and non-controlling interests of the VIE will be recorded at fair value on the statements of the primary beneficiary. Other variable interest holders do not have to consolidate, but must disclose information about the VIE and the nature of the relationship between the variable interest holder and the VIE.

User Contributed Comments 1

User Comment
dblueroom Variable interest investor does not have a material stake in the risk and reward structure of the VIE.
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