For each of the following research cases, search the FASB ASC database for information to address the issues. Copy and paste the FASB ASC paragraphs that support your responses. Then summarize briefly what your responses are, citing the paragraphs used to support your responses.

FASB ASC 1-1 Variable Interest Entities In this chapter, we discussed how Enron and other companies used special?purpose entities (SPEs) to keep the effects of transactions and events off corporate balance sheets. Accounting for SPEs is now guided by the requirements for variable interest entities (VIEs).

1. How does the FASB define a VIE? In other words, how does an entity qualify to be a VIE?

2. Is a company that meets the definition of a VIE required to consolidate the VIE?