The terms and variable interest entity are synonymous.

Question

Quizplus · Accepted Answer

While both Special Purpose Entities (SPEs) and Variable Interest Entities (VIEs) are types of entities often used for financial structuring, they are not synonymous. SPEs are created for a specific, narrow purpose, often to isolate financial risk, whereas VIEs are entities in which an investor holds a controlling interest that is not based on the majority of voting rights, leading to a different set of accounting and disclosure requirements.

The Terms