Qualifying SPE's

Do SPE’s under GAAP have to be consolidated if they are conducted for the primary benefit of the sponsoring entity now that qualfying SPE’s have been eliminated? I am confused because the last bullet point on p.174 of Intcorporate Investments says “US GAPP has eliminated the use of qualified SPEs resulting in a covergance with IFRS over the accounting treatment of SPEs” However, the solution to problem 18 on p. 186 says “Under IFRS, SPEs must be consolidated if they are conducted for the benefit of the sponsoring entity. Further, under IFRS, SPEs cannot be classified as qualifying. Under US GAAP, qualifying SPEs do not have to be consolidated.” Doesn’t that last sentence from the solution contradict with bullet point from the chapter summary? Thanks

So anyone know if Qualifying SPE’s are required to be consolidated under GAAP?

there is no QSPE anymore. if the sponsoring company is main beneficiary, then its a VIE and has to be consolidated. under US GAAP, QSPE did not have to be consolidated. the last line is irrelevant because you wont see it anymore.

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Thanks lol

Thanks lol