Two enterprises own 100% of the common stock of a VIE [A own 60%, B owns 40%].
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Two enterprises own 100% of the common stock of a VIE [A own 60%, B owns 40%]. Income is shared proportional to stock ownership. Each has 3 votes on a six person board. The board makes all decisions affecting the VIEs policies and practices. Based only on these facts, why would A account for its ownership interest in the VIE using the equity method instead of consolidating the VIE?
Related Book For
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
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