instructions: The problem is written as a Variable Interest Entity – Special Purpose Entity problem. The setting is GAAP but lends itself for IFRS and concerns consolidation questions that you can see from the data. You are being asked to essentially decide:
(1) if JV is a VIE and
(2) who – if any – should consolidate JV.
This will be based upon GAAP authority. Use CH 6 in your text as well as the literature available. IN ADDITION, after you have made the decision under GAAP you will do the same using IFRS criteria. The International Accounting Standards can be located on the WEB by using Google. You can also access the IASB website.
This is a question of:
GAAP PORTION
Is JV a VIE? If it is why is it one? As such you will need to reference the applicable data through the ASC (YOU HAVE THE ACCESS DATA IN THE CONTENT SECTION OF BRIGHTSPACE), and you have access to that data.
You need to be complete in your assessment and conclusions reached. Professional judgment will be required on your part.
After you have done 1 above, you then need to determine if JV needs to be consolidated and if it does by whom. Again be complete on your research and conclusions reached.
Please don’t make me really have to look to see what you have concluded.
IFRS PORTION
Once you have done the above do the same for IFRS.
What we want to see is / are the differences in the treatment of JV between GAAP and IFRS
The IFRS standards can be found on the internet.
REQUIREMENTS:
Paper is due in Times New Roman NOT PDF- I will not read PDF submissions nor grade them- 12 font 1 ½ space.
Minimum length is 4 pages max is 5.
Do not repeat yourself. Once you make a point I get it and I don’t need to see it again unless it really makes sense to do so.
This is a business memo. You can look up a style on line but I am concerned with content and not necessarily the look. It should be organized so that I can follow it. Have someone else read it before you submit it to me.
Spell and Grammar lose 1 point each – Have someone else read it before you submit it to me.
I have an example paper attached below along with the question.
please use the example paper as a reference but DO NOT use exact wording since the instructor is strict on plagiarism.
if you have any questions please send them in the chat,
thank you
