Discussion Topic $1$: Variable Interest Entities

Alternate Entity Transactions

Respond to your Discussion topic after you have completed your Reading and the Learning Activity.

There are many forms of relationships a firm can have with another organization. One of these common forms is the variable rate entity. Please consider this concept as you answer the following questions:

Describe a variable interest entity.

How is the primary beneficiary established?

When is the variable interest entity subject to the consolidation process?