Non- Controlling Interest
Part 1
Variable Interest Annuities (VIE’s) have gained wide attention due to the company Enron. Based on this weeks reading and weekly lecture:
Explain what VIE’s are and what part did VIE’s play in the collapse of Enron?
Does the Walt Disney Company have any VIE’s? Who are they, where are they located and how does the company account for the VIE’s?
Review the following company VIE’s and comment on the accounting application of the entity:
oGeneral Electric
oConAgra Foods
oTime Warner
oAllegheny Energy
Part 2
Explain the concept of non-controlling interest.
Research examples from corporate financial statements and notes and provide specific examples of non-controlling interest.