justin88

If its classified as a QSPE I don't think you would consolidate its assets/liabs with the parent company, since the parent doesn't retain the majority of the costs and benefits of ownership. QSPE's are 'Qualified' because they specifically don't have to be consolidated on the parent's balance sheet; they are separate legal entities. There was a list of rules in the SPV section in Level II to determine whether you should consolidate, I'd look there. This was in 2009 when I took LII, I would think the 2010 version would also have it.