Could someone discuss these? Its not sticking in my mind for some reason… Thanks
A VIE is an entity that has no equity investors with VOTING RIGHTS or the equity investors dont provide adequate funding to the VIE. Most SPEs are VIE’s. And I think a QSPE, is an American type of SPE. The important thing to remember here is when the SPE needs to be consolidated onto a companys financial statements. This would be when the company is the primary beneficially - if you have a think about what that term actually means you’ll be sorted. Basically, if the company would absorb any losses ie if they are the guarantor. If they recieve most of the left over returns etc etc etc.