FRA Evaluating quality of financial report (Schweser Concept Checker P.177 Q3)

[Jack Kwan]

Hi all,
I am not sure what is the concept the Q is trying to exam. (SPV ?)
What is the definition of “Variable Interest Entity”? Any reference?
thanks!

 

[S2000magician]

VIEs and SPVs are essentially the same thing: a new company (subsidiary) created for a specific purpose (such as purchasing receivables).

 

[jyk026]

Check intercorporate investments