Determine the main characteristics of a variable interest


Per the textbook, some investors (e.g., Warren Buffet) have contended that the U.S. GAAP treatment undervalued the parent's investment carrying value for post-control step acquisitions.

Construct one (1) argument in which you provide at least two (2) reasons for the U.S. GAAP treatment of reporting additional investments in subsidiaries when the parent previously established control. Provide support for your rationale.

•Determine the main characteristics of a variable interest entity (VIE). Evaluate the usefulness to investors of the inclusion of VIEs in the company's consolidated financial statements. Provide support for your rationale.

Atleast 300 words please!

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Accounting Basics: Determine the main characteristics of a variable interest
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