Ashford University ACC 612 Prior to beginning work on this discussion forum, read Chapter 3 of your course text

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Ashford University ACC 612

Prior to beginning work on this discussion forum, read Chapter 3 of your course text. Review the Chapter 3: The Reporting Entity and Consolidation of Less-Than-Wholly-Owned Subsidiaries with no

Differential PowerPoint presentation and the weekly lecture.

Variable Interest Annuities (VIE’s) have gained wide attention due to the company Enron. Based on this weeks reading and weekly lecture:

1. Explain what VIE’s are and what part did VIE’s play in the collapse of Enron?
2. 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?
3. Review the following company VIE’s and comment on the accounting application of the entity:

• General Electric
• ConAgra Foods
• Time Warner
• Allegheny Energy