New accounting guidance for variable interest entities: will the new rules reduce the risk?
Arlette Wilson
(Arlette C. Wilson (awilson@business.auburn.edu) is the Taylor Professor of Accounting at Auburn University, which is based in Alabama, USA)
Jefferson Jones
(Jefferson P. Jones (jjones@business.auburn.edu) is an Associate Professor, at Auburn University, which is based in Alabama, USA (www.auburn.edu).)
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Abstract
Special purpose entities, generally known as SPEs, have been the bane of everyone in the risk management and the asset management business. But they can also be extremely useful. Now, post‐Enron, further rules have been put into place to ensure that SPEs are clearly identifiable and their purpose can be transparent. The author examines how these new rules will work and assesses the likelihood of success.
Keywords
Citation
Wilson, A. and Jones, J. (2004), "New accounting guidance for variable interest entities: will the new rules reduce the risk?", Balance Sheet, Vol. 12 No. 1, pp. 37-41. https://doi.org/10.1108/09657960410514670
Publisher
:Emerald Group Publishing Limited
Copyright © 2004, Emerald Group Publishing Limited