Consolidating special purposes entities Icam live sex
Additionally, the securities issued by the SPE may contain “credit enhancements” or guarantees that reduce risk to the purchasers and therefore, further reduce the cost of funding.
However, it is expected that when this proposal is implemented, more SPEs will be consolidated than in the past.
Enron’s management extensively utilized a specific form of off-balance sheet financing, the creation of Special Purpose Entities (SPEs).
Evidence suggests that the intent of these was to hide extensive corporate liabilities from creditors, investors, and regulators.
As to finalization of this project, the FASB expects to issue an Interpretation in the fourth quarter of this year.
The accounting guidance would be effective immediately upon issuance of the Interpretation for new SPEs.