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Consolidation of SPE

28 August 2008 2,155 views No Comment

Hi Everyone

Need a little help on this one.

When it has been determined under SIC 12 that an SPE will need to be consolidated, where would one book the equity of the SPE in the consolidated financial statements of the parent entity? Does anyone in the group have a worked example of the consolidation procedure?

Thanks

Vatsala

It would simply a separate form of equity (call it Special equity or Other
equity) without control over the core parent company and subsidiaries and
with special rights in respect of the allocation of income.

Disclose the specialties around this part of equity and consider to separate
it from group equity but not as liabilities (in between them), disclose
headline from the SPE’s articles and indicate why it is still included.

I would be able to help you more but then we have to come to a contract,

Kind regards,

Henk

Dear

Consolidation procedure will be same.

Eliminate investment in SPV and take net assets of SPV (since SPV may
not have net assets , net assets of the compnay for which SPV is formed
if it has a control)

With Best Wishes and Regards

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