December 2018
As a result of financial scandals like Enron in the early 2000s, the Financial Accounting Standards Board (FASB) has placed a spotlight on related entities, which are termed Variable Interest Entities (VIEs). The FASB’s emphasis was intended to ensure that entities with specific obligations arising as a result of transactions and relationships with entities under common control (i.e., VIEs) to which a company retained economic exposure were properly accounted for in the reporting entity’s financial statements.
