ASC 810 describes the operation and reporting of a variable interest entity (VIE) in regards to consolidation, liability, and recognition. Research the accounting treatment and standards of a VIE in relation to U.S. accounting standards and IFRS accounting standards. Answer BOTH of the following questions with regards to US GAAP and IFRS. Does a U.S. parent entity need to report and consolidate a VIE when the parent has very little control? How do the expected losses for a VIE impact the reporting process?

Requirements:

Answer each question for this Critical Thinking Assignment option. It is recommended that you copy and paste each question into your paper (in Microsoft Word) for submission in bold letters, then show work and answer under each question so you can ensure you answer every question.

Remember to maintain a formal tone and cite at least two scholarly sources to support your analysis