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3 Cards in this Set
- Front
- Back
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What is SPE? |
Sponsor has control over SPE finances or operating activities while third parties have controlling stake in the SPE equity. |
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What is VIE? What are its characteristics? |
1. At risk equity that is insufficient to finance entity activities without additional support. 2.Equity investors lack any one of the following: 2.1 decision making rights 2.2 obligation to absorb expected losses 2.3 the right to receive expected returns If an SPE is a VIE it is consolidated by the primary beneficiary |
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What is the treatment of restructuring costs? |
Restructuring costs are expensed when incurred and not capitalized as part of acquisition cost under both IFRS and US GAAP |
