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

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!

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

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Check intercorporate investments