.......................... 2 Variable Interest Model ..................... 2 Voting model ..................................... 3 Navigating through the Variable Interest Model ............................... 3 1. Does a scope exception to consolidation guidance (ASC 810) apply? ....................... 4 2. Does a scope exception to the Variable Interest Model apply? .... 4 3. Does the enterprise have a variable interest in a legal entity? ............................... 6 4. Is the legal entity a VIE? .............. 8 5. If the legal entity is a VIE, is the enterprise the primary beneficiary? ................. 14 Conclusion....................................... 19 Appendix: Flowchart of the consolidation models in ASC 810 ..21 A quick guide to understanding the Variable Interest Model and eight common misconceptions What you need to know • Depending on the circumstances, consolidation may be based on factors other than majority ownership. • To help you navigate through the Variable Interest Model, we lay out five questions you need to ask to evaluate an entity for consolidation. • We identify eight common misconceptions involving scope exceptions, determining whether an entity is a variable interest entity (VIE) and determining the primary beneficiary of a VIE. Introduction Two years after the Financial Accounting Standards Board (FASB) revised the Variable Interest Model in its consolidation guidance, we continue to see eight common misconceptions. Under the traditional...
Words: 10530 - Pages: 43
...In the thirteenth century, the rule of a king was frequent and churchly beliefs on virtue dominated life. Rule by the demos was seen as an unacceptable form of government. Aquinas argues in favor of kingship, divinely ordained; of the common good, heralded by the king; and for law which is based upon Christian virtues and the common good. After laying out each of Thomas Aquinas’s arguments, I plan to discuss how a rule by many is the best form of rule, law is created for order and, sometimes, the interest of the legislator, and how the common good does not exist. First, Aquinas claims that a community is best ruled by a king. The first reason he gives for this is that a king creates unity and a government less susceptible to faction. Aquinas...
Words: 1885 - Pages: 8
...KARL MARX AND THE CONCEPTS OF SOCIETY AND SOCIAL STRUCTURE BEING AN ASSIGNMENT SUBMITTED BY EKOTT, IMOH BERNARD 1.0 INTRODUCTION The philosopher, social scientist, historian and revolutionary, Karl Heinrich Marx, is without a doubt the most influential socialist thinker to emerge in the 19th century. Although he was largely ignored by scholars in his own lifetime, his social, economic and political ideas gained rapid acceptance in the socialist movement after his death in 1883. Until quite recently almost half the population of the world lived under regimes that claim to be Marxist. This very success, however, has meant that the original ideas of Marx have often been modified and his meanings adapted to a great variety of political circumstances. In addition, the fact that Marx delayed publication of many of his writings meant that is been only recently that scholars had the opportunity to appreciate Marx's intellectual stature. Karl Heinrich Marx was born into a comfortable middle-class home in Trier on the river Moselle in Germany on May 5, 1818. He came from a long line of rabbis on both sides of his family and his father, a man who knew Voltaire and Lessing by heart, had agreed to baptism as a Protestant so that he would not lose his job as one of the most respected lawyers in Trier. At the age of seventeen, Marx enrolled in the Faculty of Law at the University of Bonn. At Bonn he became engaged to Jenny von Westphalen, the daughter of Baron von Westphalen , a prominent...
Words: 7678 - Pages: 31
...constituencies in the House of Commons. The UK parliament stands in the Centre of the British political system, as it is the source of all political power as well as being legally sovereign. Government has to be drawn from parliament as well as being accountable to it; accountability means that parliament must justify its policies to parliament as well as referring to representatives who are accountable for their electorates. Parliament main function is not to obstruct and control the government, as it will only do this if the government is seen to be abusing its power by not acting in the public’s interest. The main role of parliament is to support the government and to legitimize its proposals. Parliament is also bicameral, separated in to the House of Commons and the House of Lords. Representation is a crucial function of parliament; in the UK we use a system called Representative democracy where most decisions are made by elected representatives rather than the people themselves. There are arguments that representation in parliament is strong. Peers who have more expertise in particular areas of policies and can help to improve legislation, therefore represent many sections of society and associations more effectively. People also feel that representatives will have more political knowledge and the forth are more effective when questioning the minister or calling the government to account. This allows people to know that their interests and grievances are strongly represented...
Words: 1548 - Pages: 7
...useful concept to understand how the commons is managed in our society? Why or why not? Markets are not able to respond effectively to environmental issues because they cannot determine the value of the environment and its elements. It is not a part of the exchange or transaction and market systems were not designed to factor in environmental costs. Public policy is definitely a useful concept in understanding how the commons are managed in our society. It allows citizens to effectively understand the many different rules and regulations that exist in order to protect as well as conserve the environment. It places value upon what markets cannot determine. 2. Which definition of public policy makes the most sense to you personally? What essential elements are there to your definition? How does public policy differ from business policy? Personally, the definition of public policy that makes the most sense is that “…public policy is a specific course of action taken collectively by society or by a legitimate representative of society addressing a specific problem of public concern that reflects the interests of society or particular segments of society.” The essential element to this definition that rings most true to me is the last portion; that public policy is a representation of the interests of society as either a partial or a whole. Public policy differs from business policy in that it is essentially a representation of citizens’ interest to improve upon a specific issue...
Words: 1477 - Pages: 6
...Another reason why others and I are pro secession is, a state will secede because they have no common interest with whom they seceded from. When looking at the Maine secession before Maine seceded, all of the farmers from Massachusetts moved to Maine for the richer soil and overall better farming conditions, but Massachusetts was made up mostly of coastal merchants. These are vey different types of careers that have next to nothing in common. With nothing in common these two areas have no unity and are constantly at strife with one another; in addition Massachusetts holds the legislative powers and makes laws and regulations work best for their interests only. But once Maine seceded, it closed the gap and ended much of the strife these areas...
Words: 264 - Pages: 2
...The unitary and pluralist perspectives of employee relations Since the 1980s, there has been a significant paradigm shift in managing employee relations (ER) to one focused on more strategic and integrated frameworks that are based on employee commitment and shared workplace interests, instead of the traditional managerial control and conflicts between employers and employees (Cully et al. 1999: 57; Kaufman 2008: 317). These ER initiatives can be traced back to the 1950s in the United States, where three human resource (HR) models became prominent, namely Fombrun, Tichy, and Devanna’s (1984) ‘matching model,’ Beer et al.’s (1984) ‘Harvard model,’ and Walton’s (1985) ‘control to commitment’ model (Farnham 1993: 34). Similar ER changes occurred in the United Kingdom (UK), although mainly in larger organisations. Authors argued that the manager’s frame of reference impacts how these perspectives are interpreted and used or not used (Farnham 1993: 36, Ackers and Payne 1998: 533,and Gennard and Judge 2002: 52). The three common kinds of ER perspectives are: unitarist, pluralist, and neo-unitary (Farnham 1993: 37). This essay critically evaluates only two approaches to ER namely, the unitary and pluralist perspectives and demonstrates the implications for managing successful ER in organisations adopting the unitarist perspectives. Unitarist perspectives Fox (1996) stated that there are two major frames of reference for ER, the unitarist and pluralist frameworks (cited...
Words: 3432 - Pages: 14
...the ROE. e. An increase in a firm’s debt ratio, with no changes in its sales or operating costs, could be expected to lower the profit margin. 2. Companies HD and LD have the same tax rate, sales, total assets, and basic earning power. Both companies have positive net incomes. Company HD has a higher debt ratio and, therefore, a higher interest expense. Which of the following statements is CORRECT? f. Company HD has a lower equity multiplier. g. Company HD has more net income. h. Company HD pays more in taxes. i. Company HD has a lower ROE. j. Company HD has a lower times interest earned (TIE) ratio. 3. Companies HD and LD have the same total assets, sales, operating costs, and tax rates, and they pay the same interest rate on their debt. However, company HD has a higher debt ratio. Which of the following statements is CORRECT? k. Given this information, LD must have the higher ROE. l. Company LD has a higher basic earning power ratio (BEP). m. Company HD has a higher basic earning power ratio (BEP). n. If the interest rate the companies pay on their debt is more than their basic earning power (BEP), then Company HD will have the higher ROE. o. If the interest rate the companies pay on their debt is less than their basic...
Words: 627 - Pages: 3
...of Confederation made the national government too powerful, and took too much control over the individual states because they thought the Constitution would create a government the people could not control. They argued for a bill of rights, and led state conventions to pass demanding specific bill of rights as amendments. They also thought that an organization of a national government would threaten people’s liberty, and would fail to protect individual rights because the government would be too far removed from the average citizens to understand or reflect their concerns, and could be used to violate the citizens’ rights. The Anti-Federalists believed that a representative government can only work if the community is small with similar interests and beliefs, for example, people that live in a small, agrarian community is more likely to have civic virtue due to the fact that the community lives closely together, and is more willing to set aside...
Words: 849 - Pages: 4
...disclose a conflict of interest rendered the transaction voidable at the option of the company. Aside from rescinding the contract, the company can seek to obtain a range of remedies such as an injunction to stop the breach of duty continuing, a constructive trust over assets acquired arising from the breach of duty, an account of profits to strip away gains made by the breach of the duty or equitable compensation. For contraventions of the statutory duties, both ss182 and 183 are civil penalty provisions under s1317E. Therefore, breach of these provisions may result in a declaration of contravention being made by the court and thereafter ASIC may apply for a pecuniary penalty order (s1317G) and/or a disqualification order (s206C) and/or compensation for the company (s1317H). A serious contravention of ss182 or 183 which is dishonest or reckless may result in a criminal liability under s184 (2). This action may be taken by ASIC and/or the Commonwealth Director of Public Prosecutions. The word ‘fiduciary’ has its roots in the Latin word fiducia, which means trust or confidence. A fiduciary duty is a legal duty to act solely in another party’s interest. Parties owing this duty are called fiduciaries. The individuals to whom they owe a duty to are called principals. Fiduciaries may not profit from their relationship with their principals unless they have the principal’s express informed consent. As fiduciaries, they carry the duty to avoid any conflicts of interest between themselves...
Words: 3556 - Pages: 15
...Rousseau’s book. In this summary, I will analyze some of the key and interesting points either by this book or by the class discussion. This book is about political law, government and people. This book gives out bigger view of what a contract really means in different contents. It is one of the most powerful books in human history. Let me try to understand Rousseau's world as follows: • Legitimacy and Nature Law Rousseau starts this book by legitimacy. Unfortunately, we have very short life and no human being ever lives long enough to experience the historical changes of the society. Rousseau’s problem is a common problem to people who is born in a ready society with existing classes, governments and cultures. Back into the civilization history, there are too many examples of making power by force. Thus the first point Rousseau argue is that power is not right, unless it transfers obedience into duty, strength into right. Otherwise there is no need for a further discussion of the formation of the society: the strongest wins everything. Rather, Rousseau argues that right comes from social convention. But what types of social convention will prevent the strongest from being the absolute king of all others? Rousseau doesn’t answer this question directly. Instead, in book I the first sentence is: MAN is born free; and everywhere he is in chains. My interpretation is that Rousseau uses the Nature law to justify the social convention. To be more specific, Rousseau...
Words: 2889 - Pages: 12
...decisions that are rational and/or for self-gain, because they believe someone else is and/or going to do the same, is called the Tragedy of the Commons. People usually feel that someone else is going to cheat or make a rational decision to benefit him or herself before they feel comfortable doing the same. In addition, if someone feels that the goal of the group begins to seem unattainable, they may make a rationally decision. When tragedy of the common happens, it is usually the cause of a failure of collective action. Although, to prevent the tragedy of common there must be a strong best interest in the group, but when this is not enough the government is required for policing and enforcement....
Words: 529 - Pages: 3
...English legal system, the Australian legal system is known as a common law legal system, which are in widespread use, particularly in England. Under such a legal system, the law is derived from the courts and parliament. From the two sources of law making, this essay will relate the role of parliament in making laws, the division of law making powers in a federal system, the role of the common law in making laws to show how various parliaments and courts share the role of making law. Lastly, it will illustrate the relationship between the courts and parliament. Legislating is one of the important functions of parliament so parliament is one of the main primary sources of law in Australia. Section 1 of chapter 1 of the Australian Constitution defines the federal Parliament’s power to make laws: 'The legislative power of the Commonwealth shall be vested in a Federal Parliament' (Parliamentary Education Office, 2010). Thus, parliaments have the power to make new laws and update old laws and the laws made by parliament are called Acts of Parliament, statutes or legislation. The systems of laws in each State are influential on each other, but not binding. Laws passed by the Parliament of Australia apply to the whole of Australia. The distribution of law-making powers between the Commonwealth and the six States is often referred to as the division of powers. The Constitution defines the boundaries of law-making powers between the Commonwealth and the States/Territories. Section 51...
Words: 841 - Pages: 4
...situations in there lives and through out the novel both Macbeth and Atticus develop an attitude. So Macbeth from the novel ‘’ Macbeth ‘’ and Atticus from the novel ‘’ To Kill a Mockingbird ‘’ are both protagonist of those novel and they faced situations and to compare them how each one of these protagonist valued the common good and each one faced it in a different way. Macbeth faced it with individual interest through violence and Atticus faced it with putting his own interests as risk in order to defend his beliefs about the common good. The two protagonist are going to be compared by the decisions took in dealing with the conflict,...
Words: 988 - Pages: 4
...important Australian legal reforms of the last century” . Justice Kirby also states that “greatest defect in the majority is that it destroys the capacity of the Review Act to render the exercise of public power accountable to the law where a breach can be shown” . The purpose of the ADJR Act is to review decisions and standing should be given if the person is aggrieved however in these circumstances it is not given to Tang as such it is inconsistent. It was held that the review act did not allow Tang to seek for judicial review because the decision which was made did not fall under the University Act . The majority in the High Court of Australia came up with their own two criteria which could prove whether a decision made is under an enactment . Firstly it has to be “expressly or impliedly required or authorised by the...
Words: 2275 - Pages: 10
