Q1. Firm A recently leased equipment used in its manufacturing plant. If the leased asset is worth less than $100,000 at the end of the lease, Firm A will pay the lessor the difference. Firm B provided debt financing to an unrelated entity. The debt has a provision whereby Firm B cannot be repaid until all other senior debt is satisfied. According to FASB Interpretation No. 46(R), do Firm A and Firm B have a variable interest? A) Only one has a variable interest. B) Neither have a variable interest. C) Both have a variable interest.
Q2. Which of the following statements about variable interest entities (VIE) are correct or incorrect? Statement #1 One potential benefit of a VIE is a lower cost of capital since the assets and liabilities of the VIE are isolated in the event the sponsor experiences financial difficulties. Statement #2 The organizational form of a VIE must be either a partnership or a joint venture and it is necessary for the VIE to have separate management and employees.
A) Only one is correct. B) Both are correct. C) Both are incorrect.
Q3. Which of the following statements about special purpose entities (SPE) are correct or incorrect? Statement #1: The sponsor usually maintains the decision-making power and voting control over the SPE. Statement #2: The equity owners of an SPE usually receive a rate of return that is tied to the performance of the SPE.
A) Both are correct. B) Both are incorrect. C) Only one is correct.
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发表于 2009-1-8 11:07
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