does SPE use consolidation method? Thanks.作者: genuinecfa 时间: 2011-7-11 20:07
SPE doesn't use Consolidation.
Parent (Primary benefeciary) who needs to put the SPE on its books - uses Consolidation.
CP作者: yalo 时间: 2011-7-11 20:07
you don't consolidate if it meets certain requiremens. I think IFRS says you have to consolidate if "in substance" you control it. GAAP is similar i think作者: redskins44 时间: 2011-7-11 20:07
Under IFRS it is is consolidated into the parent if it meets certain criteria relating to the parent having decision making rights, or if it receives most of the benefits or has most of the risks.
Under US GAAP I think all SPE's or VIE's are consolidated into the parent, unless they're a QSPE. If they fulfill the QSPE criteria they don't have to be consolidated. (As far as I can remember).
Edited 1 time(s). Last edit at Thursday, May 20, 2010 at 09:54AM by sbmarti2.作者: economicz 时间: 2011-7-11 20:07
QSPE are no longer allowed.作者: b_sea93 时间: 2011-7-11 20:07
QSPE's went extinct effective Jan 1 2010.
WHich is why i doubt the CFAI will ask a question on this. The accouting rules changed after their curriculum was released
