The variable interest holder having the highest percentage interest of all of the variable interest holders must consolidate the VIE.

Question

Quizplus · Accepted Answer

The primary beneficiary, who has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE, must consolidate the VIE, not necessarily the holder with the highest percentage interest.

The Variable Interest Holder Having the Highest Percentage Interest of All