Hey, Can someone outline/discuss the main differences between those two? Thanks
I believe they are both the same. One is usgaap, the Other is ifrs. Just remember that qspe(qualifying special purpose entities) are the ones that are different and not consolidated.
My understanding of this is that: As per GAAP FIN 46®, an SPE becomes a VIE if it satisfies any of the following conditions: 1) Insufficient at equity investments, 2) shareholders lack decision making rights, 3) Shareholders do not absorb expected losses, 4)Shareholders donot receive expected residual income Once it is established that the entity is a VIE, it must be consolidated by the primary beneficiary. An SPE that is not a VIE need not be consolidated. Employee benefit plans and QSPE are SPEs but not VIEs.
Thanks. I guess I had it a bit mixed up.
They are not same. My understanding is Every SPE can not be VIE. SPE can be classified as VIE when conditiongs that Daggny mentioned above are satisfied.