Q1. Maverick Incorporated formed a special purpose entity (SPE) to purchase and lease a 50,000 acre ranch. The SPE financed 95% of the purchase price with debt. The remaining 5% was financed with equity capital received from two separate independent investors. The lender would not make the loan without Maverick’s guarantee. How should Maverick treat the SPE in its financial statements if Maverick is the lessee? A) Maverick must consolidate the SPE. B) No firm must consolidate the SPE. C) Each equity investor must proportionately consolidate the SPE.
Q2. According to FASB Interpretation No. 46(R), would an entity qualify as a variable interest entity (VIE) if the shareholders have insufficient equity capital at-risk and would an entity qualify as a VIE if the shareholders absorb the expected losses? A) Qualify as both. B) Qualify as one only. C) Qualify as neither.
Q3. Mustang Corporation formed a special purpose entity (SPE) for purposes of providing research and development. An unrelated firm absorbs the expected losses of the SPE and the independent shareholders of the SPE receive the expected residual returns. Is the SPE considered a variable interest entity (VIE) according to FASB Interpretation No. 46(R) and is consolidation required by Mustang, respectively? A) Yes; Yes. B) Yes; No. C) No; No.
Q4. Pinto Corporation is an automobile manufacturer that recently created two separate special purpose entities, SPE #1 and SPE #2. Pinto’s financial statements are prepared in accordance with U.S. GAAP. SPE #1 purchases and securitizes notes receivable originated by Pinto. SPE #1’s capital structure consists of a combination of debt and equity. The equity was contributed from investors unrelated to Pinto. No additional financial support from Pinto is necessary to finance SPE #1’s activities. SPE #2 was created to purchase an automotive parts subsidiary of Pinto. SPE #2’s capital structure consists of 90% debt and 10% equity. The equity was contributed by investors unrelated to Pinto. Through a series of derivative instruments, the expected losses of the SPE will be absorbed by Pinto. No additional financial support was necessary to obtain the debt financing. Should Pinto consolidate SPE #1 and SPE #2? A) Consolidate both. B) Consolidate neither. C) Consolidate one only.
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发表于 2009-1-8 11:09
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