The implied value of a variable interest entity (VIE) at acquisition under Canadian GAAP is equal to:
A) the fair value of the variable interest entity.
B) the fair value of the non-controlling interest of the variable interest entity.
C) the book value of the variable interest entity.
D)the fair value of the consideration paid by the primary beneficiary plus the fair value of the non-controlling interest of the variable interest entity.

Question

Quizplus · Accepted Answer

Under Canadian GAAP, the implied value of a VIE at acquisition is determined by the fair value of the consideration paid by the primary beneficiary plus the fair value of the non-controlling interest.

The Implied Value of a Variable Interest Entity (VIE) at Acquisition