1.Special-purpose entities are created for a variety of valid business reasons which include separately accounting for certain employee benefit plans, transfers of financial assets in the banking industry and exclusion of certain accounts from consolidation in life insurance companies?

Select one:

True

False

2.The old standard for consolidation rules (ARB No. 51) relied on control from contractual and financial arrangements to determine if consolidation was required for two separate entities?

Select one:

True

False