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)
“President Kennedy had a wholesome, widely discussed, and largely deserved reputation for his interest in women.... But no President, however young and energetic, could possibly have gotten around to all the ladies in Washington, New York, and Hollywood who made claim to his affections after he died.... Such was the force of Jack Kennedy and the manner of his death that anyone associated with him, even the pretenders, assumed added glamour and interest.”
—Barbara Howar (b. 1934)
“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)