The balance sheet is one of the most important pieces of financial information issued by a company. It is a snapshot of what a company owns and owes at that point in time. The income statement, in contrast, shows the company's revenues and profits over a certain period.
Variable interest entity. Variable interest entity (VIE) is a term used by the United States Financial Accounting Standards Board (FASB) in FIN 46 to refer to an entity (the investee) in which the investor holds a controlling interest that is not based on the majority of voting rights. It is closely related to the concept of a special purpose entity.
In US GAAP, âcapitalized interestâ is the part of interest expense that is capitalized as part of the cost of asset. IFRS on the other hand, uses the term âborrowing costsâ to refer to the costs incurred in relation to a debt used for construction of the asset.