Variable Interest Entities Discussion and Analysis the FASB ASC Subtopic “Variable Interest Entities” affects thousands of business enterprises that now, as primary beneficiaries, consolidate entities that qualify as controlled VIEs. Retrieve the annual reports for the Walt Disney Company which consolidates VIEs: in one paragraph for each answer the following:
The reasons for the consolidation of the company’s VIE(s).
The effect of the consolidation of the VIE(s) on the company’s financial statements. The link to the is annual reports in 2018 for the Walt Disney Company. A variable interest entity (VIE) refers to a legal business structure in which an investor has a controlling interest despite not having a majority of voting rights; or, it may refer to an accounting structure involving equity investors that do not have sufficient resources to support the ongoing operating needs of the business.