When is the variable interest entity subject to the consolidation process?

When is the variable interest entity subject to the consolidation process?
Topic #1: Variable Interest Entities

There are many forms of relationships a firm can have with another organization. One of these common forms is the variable rate entity. Please consider this concept as you answer the following questions:

Describe a variable interest entity.
How is the primary beneficiary established?
When is the variable interest entity subject to the consolidation process?


 

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