Part A (200 Words)
As discussed in the text, variable interest entities affect
thousands of business enterprises that now, as primary beneficiaries,
consolidate entities that qualify as controlled variable interest entities
(VIEs). Retrieve the annual reports of one or more of the following companies:
William Scotsman/Mobile Mini
General Electric
· Allegheny Energy
Write a response that describes
·
The reasons for
consolidation of the company’s VIE(s).
·
The effect of the
consolidation of the VIE(s) on the company’s financial statements
·
Part B (200 Words)
Download Pfizer’s 2015 annual report (search for Pfizer Investor
Relations). Locate the firm’s consolidated statement of cash flows and answer
the following items:
·
Does the firm employ
the direct or indirect method of accounting for operating cash flows?
·
Why does the firm
account for the changes in balances in operating accounts (e.g., accounts
receivable, inventory, and accounts payable) in determining operating cash
flows as net of acquisitions and divestitures?
·
Describe the
accounting for cash paid for business acquisitions in the statement of cash
flows.
·
Describe the
accounting for any non-controlling subsidiary interest and any other business
combination–related items in the consolidated statement of cash flows.