Are these the same? For some reason I only have SPEs in my notes…
SPE are consolidated under IFRS but not GAAP. Is this correct?
SPEs was used for anything “special purpose” related - in the past. Now the latest gist in town is the VIE. and it’s little dodgy brother called QSPEs.
QSPE does not need to be consolidated under US GAAP, IFRS does not recognize the use of QSPEs.
The choice of consolidation of each of these will have to come through application of eligibility/beneficiary tests.
VIE is if significant influence and risk and returns are borned by the sponsoring company and are consolidated.
QSPE for gaap the opposite… and this is a one line balance sheet item. assumes you dont bear the risks and rewards and control over the entity
SPE is the general term btw. and thats what they state in IFRS…
GAAP seperates the terminology to VIE (control), QSPE (no control)… but QSPE no longer exists anyway
So we do consolidate on the balance sheet for ifrs and us gaap, or just ifrs? Thanks
As of today (actually from 2008 as far as I remeber) we consolidate both. SPE = VIE. Former is IFRS name and latter is GAAP name.