If an entity qualifies as a variable interest entity (VIE), U.S.GAAP requires the primary beneficiary of the VIE to consolidate the VIE.

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This is true according to U.S. GAAP. The primary beneficiary is the party that has the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and has the obligation to absorb losses or receive benefits from the VIE that could potentially be significant to the VIE. As the primary beneficiary, the entity must consolidate the VIE in its financial statements.

If an Entity Qualifies as a Variable Interest Entity (VIE)