comp_sci_kid

You have to add the value of the heavy equip to both the Asset and Liability side to make the A=L+E equation balance.

While it is hard to see that LSMC will be the beneficiariy of the Asset, they certainly will be liable through their quarantee of the equipment and therefore must consolidate the VIE. Again, if you add to L with no adustment to E, we would need to add to A to make the equation balance.