Off – Balance Sheet financing by using Variable Interest Entities and Consolidate of Financial Statements Requirements Applied and Analytical Case Study | ||
| Al-Rafidain University College For Sciences | ||
| Article 1, Volume 0, Issue 33, August 2017, Pages 1-36 | ||
| Author | ||
| Mohammed H. Alshujairi | ||
| Abstract | ||
| This research aims to study and analyze the nature and concept of the off- balance sheet financing using (VIE).The problem of the research sets out by adopting such entities as means of the off- balance sheet financing that contribute in the misleading of the economical substance of primary beneficiaries and hides its actual and real debts, hiding the real financial position of the company and leading to mislead customers working with such companies. Thus, contribute in the occurrence of the financial crises and huge economies and the economic structure of the state, which requires the determination and setting of standards that participate in the discovery of such type of financing and forcing it to the accounting standards that organized it. Accordingly , the present research has adopted the hypotheses that test and examine the methods that clarify the nature of those entities and their relationships and also the requirements of consolidating their financial statements, and also the analysis of the problems that may emerge at the stage of non-uniformity and its jeopardizing consequences. And in order to examine the hypotheses of the study had adopted an approach that studies the analytical and practical and applicable case study of one of the private and corporate companies that owns number of (VIE) and also to study and analyze the relationship among the company and its affiliated entities to determine their features and characteristics in accordance with the concept of variable interests and then achieving the practical requirements of the process of consolidating the financial statements that aims to interpret and explain those relationships and their causes and effects on the essential economic foundation of the mother company when consolidating the (VIE) that concerned it, and the impacts resulted from the non-uniformity of entities that serve the mother company. | ||
| Keywords | ||
| Off; Variable Interest Entities; Consolidated Financial Statements | ||
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