Which of the following is true regarding SIC 12, "Consolidation--Special Purpose Entities", and FIN 46R, "Consolidation of Variable Interest Entities"?
a. Both pronouncements show evidence of being a principles-based standard.
b. Both pronouncements state that the substance of the relationship between an entity and the variable-interest or special-purpose entity is the determining factor in deciding to consolidate a variable-interest or special-purpose entity.
c. Both pronouncements state that the entity expected to bear the majority of the expected gains or losses of the variable-interest or special-purpose entity should consolidate the variable-interest or special-purpose entity.
d. Both pronouncements state that technical voting control of an SPE is the determining factor in deciding to consolidate a variable-interest or special-interest entity.
A
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