Does a SPE have income statement?

If one company made sales of receivables to its spe, the ar and liability of this company will go up under consolidation. How about the company’s income statement, will any ratios related to income statement change? Does a SPE have income statement? thx

To the extent any losses are realized, it would. Also, any interest on the loans and servicing expenses.

Recall that generally, these are the rules for reporting equity ownership; 0-20% Classify as Available for Sale, hold to maturity, or trading, 20-50% Equity method 50% + consolidation Reality is an SPV created specifically for the purpose of raising capital is going to require consolidation with the oranization that is considered to ‘control it’ regardless of the % ownership. This is from my notes, maybe it helps, maybe not: Consolidation is now required on SPEs with their sponsoring companies (under both GAAP and IFRS), even for non majority ownership. IFRS criteria that imply a sponsoring company controls an SPE: - Sponsor benefits from SPE’s activities - Sponsor has decision making powers for the SPE with respect to making decisions for their own benefit - Absorbs risks/rewards of the SPE Under GAAP, the concept of a VIE (variable interest entity) is an SPE that is financially controlled by one or more entities, none of which have a majority interest. The criteria for an SPE to be considered a VIE is: - Equity at risk is insufficient to finance its own activities without help from sponsors - Equity investors other than the sponsoring company lack o The ability to make decisions o Obligation to absorb losses o Right to receive returns Under GAAP, the sponsoring company is the primary beneficiary of the SPE, and must consolidate. In the case where one entity absorbs the majority of losses, and another absorbs the majority of the gains, the one that absorbs the losses is considered the primary sponsor/beneficiary and must consolidate. In Conclusion, regardless of if you’re using GAAP or IFRS, you can pretty much say that if you control an SPE, you need to consolidate with it (that means income statement, balance sheet, CF statement; everything.