Georgia Greetings and Accessories, Inc., (hereinafter referred to as GGAI) just purchased a 40% ownership interest in another entity, Louisiana Designer Yarn, Inc., (hereinafter referred to as LDYI) in a business combination for a purchase price (consideration) valued at $6, 500,000. Through the 40% ownership interest, it is considered true that GGAI has acquired significant influence over LDYI. However, GGAI's auditors feel that GGAl has acquired a variable Interest Entity (VIE) through the purchase of the 40% stock ownership considered along with other contractual controls that GGAI already had over LDYI's operations. In effect, the auditors feel that GGAI must account for the LDYI ownership interest as a VIE, and as the primary beneficiary GGAI must consolidate the VIE. At issue is the accounting for the stock investment in LDYl, by GGAI. GGAI had intended to account for the stock investment in LDYl not using the equity method, but instead, using the fair value option under ASC 825. Since the investment is stock, which is a financial asset, is this possible? State whether or not this is allowed under US GAAP, for full credit include an adequate explanation and cite appropriate authority for your position