Enron and other companies used special-purpose entities (SPES) to keep the effects of transactions and events off corporate balance sheets. Accounting for SPES in now guided by the requirements for variable interest entities (VIES). 1. How does the FASB ASC define a VIE? In other words, how does an entity qualify to be a VIE? You should include references to the ASC in your response. 2 Is a company that meets the definition of a VIE required to consolidate the VIE? You should include references to the ASC in your response.