Variable Interest Entities (VIE)

Variable Interest Entities (VIE),

How Do You Define Variable Interest Entities (VIE)?

A company with variable rights (VIE) means a legal business structure in which investors have an interest in controlling, although the majority of them do not have the right to vote. Its features include a structure in which stock investors do not have the resources to meet the company's current operating needs. In many cases, VIE is used to protect companies from lenders or litigation. Companies that are the primary beneficiaries of VIE must declare their ownership of the company in a mandatory balance sheet.

  • A company with variable rights (VIE) means a legal business structure in which investors have an interest in controlling, although the majority of them do not have the right to vote.
  • VIE Investors do not share in the remaining profits or losses.
  • Variable interest institutions are often formed as Special Purpose Vehicles (SPVs) to own inactive financial assets or to carry out research and development activities.
  • According to federal securities laws, public companies must disclose their relationship with VIE when filling out their 10K forms.

Literal Meanings of Variable Interest Entities (VIE)

Variable:

Meanings of Variable:
  1. It is contradictory or a static pattern that changes.

  2. Can be changed or customized.

  3. Elements, features or factors that may vary or change.

Sentences of Variable
  1. The quality of hospital food varies widely

  2. The drill has variable speed

  3. There are many variables involved to make a meaningful prediction

Synonyms of Variable

changeable, changing, varying, shifting, fluctuating, irregular, wavering, vacillating, inconstant, inconsistent, fluid, floating, unsteady, uneven, unstable, unsettled, movable, mutable, protean, chameleonic, unfixed, fitful, capricious

Interest:

Meanings of Interest:
  1. The state of wanting to know or want to learn someone or something.

  2. The amount that is paid permanently for a certain rate of loan repayment or for delay in loan repayment.

  3. Participation, operation or interest in the company, primarily financial support.

Sentences of Interest
  1. Integration is not against the public interest

  2. Voters must express their interests

  3. Code of National Interests in India, Brazil and Africa

Synonyms of Interest

attentiveness, undivided attention, absorption, engrossment, heed, regard, notice, scrutiny, dividends, profits, returns, of benefit to, to the advantage of, for the sake of, for the benefit of, stake, share, portion, claim, investment, stock, equity, be of interest to, appeal to, attract, be attractive to, intrigue, fascinate

Entities:

Synonyms of Entities

organization, institution, establishment, body, operation

VIE:

Meanings of VIE:
  1. Competing with someone or doing something.

Sentences of VIE
  1. Rival people are competing to control the beverage trade

Synonyms of VIE

compete, contend, contest, struggle, fight, battle, cross swords, lock horns, jockey, jostle, grapple, wrestle