FAR 4.3 - Basic Conolidation Concept

Question 1

An investor owning more than 50% of a subsidiary has:

Answer 1

Controlling interest

Question 2

The portion of the equity of a subsidiary that is not attributable to the parent:

Answer 2

Non controlling interest

Question 3

An entity that does not have equity investors with voting rights OR lacks the sufficient financial resources to support its activities:

Answer 3

Variable interest entity

Question 4

The primarily beneficiary entity of a VIE is required to:

Answer 4

Consolidate the VIE