True or False

1- Equity ownership that establishes control over business operations is the only criterion for consolidated financial reporting.

2- A primary beneficiary of a VIE will either have the power to direct the activities affecting the VIE's economic performance, or have the obligation to absorb losses or receive benefits significant to the VIE.

3- The financial reporting principles for consolidating variable interest entities use the same fair value measurement in the initial year as business combinations accomplished in the acquisition method using voting interests.

4- If the collective fair values of the net assets of a VIE exceed the total business fair value, then the primary beneficiary recognizes recognizes a gain as a bargain purchase.

5- The process to consolidate a primary beneficiary with a variable interest entity includes consolidation entries to account for the combined entries as a single business, eliminating the intra-company offsetting accounts, and reversing recognition of intra-company income, gains, and losses.