Variable interest entity (VIE) is a term used by the United States Financial Accounting Standards Board in FIN 46 to refer to an entity (the investee) in which the investor holds a controlling interest that is not based on the majority of voting rights. It is closely related to the concept of a special purpose entity. The importance of identifying a VIE is that a company needs to consolidate such entities if it is the primary beneficiary of the VIE.
Note: The guidance in FIN 46 and FIN 46R was subsequently revised when FASB issued Statement 167.
Read more about Variable Interest Entity: Criteria
Famous quotes containing the words variable, interest and/or entity:
“Walked forth to ease my pain
Along the shore of silver streaming Thames,
Whose rutty bank, the which his river hems,
Was painted all with variable flowers,”
—Edmund Spenser (1552?–1599)
“... there is nothing more irritating to a feminist than the average “Woman’s Page” of a newspaper, with its out-dated assumption that all women have a common trade interest in the household arts, and a common leisure interest in clothes and the doings of “high society.” Women’s interests to-day are as wide as the world.”
—Crystal Eastman (1881–1928)
“What is this world of ours? A complex entity subject to sudden changes which all indicate a tendency to destruction; a swift succession of beings which follow one another, assert themselves and disappear; a fleeting symmetry; a momentary order.”
—Denis Diderot (1713–1784)