Pwc's Cfodirect Podcast

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.We continue our miniseries on consolidation accounting and dive into the evaluation of variable interests and the characteristics of a variable interest entity (VIE).In this episode, we discuss: 1:24 – An overview of the VIE model 3:30 – Determining whether there is a variable interest 11:25 – Identifying “at-risk” equity 15:28 – Evaluating whether an entity is a VIE by assessing the following characteristics exist: 16:00 – Insufficient equity investment at risk  24:27 – Equity lacks decision making rights 34:40 – Equity with nonsubstantive voting rights 37:38 – Lack of obligation to absorb losses or right to receive residual returns 41:45 – A recap of the episode and final thoughts For more information on this topic, read chapters 3 and 4 of our Consolidation guide. Also, for an overview of the consolidation framework, listen to the first episode in this miniseries, The consolidation framework – Getting started. Additio