Final answer:
The accurate statement about the variable interest accounting model is that voting interest control is required for consolidation. The model focuses on evaluating power and economics, and power to direct an entity's key activities is relevant. The correct answer is A.
Step-by-step explanation:
An accurate statement about the variable interest accounting model is that voting interest control is required for consolidation. The variable interest model focuses primarily on evaluating power and economics. Power to direct an entity's key activities is relevant to the variable interest model, as it determines the controlling interest in the entity. Thus, options b, c, and d are not accurate statements about the variable interest accounting model.
The accurate statement about the variable interest accounting model is that it evaluates an entity's power over and economics ties to a VIE, focusing on the capacity to direct key activities and the exposure to gains or losses, rather than on voting control.
The variable interest entity (VIE) accounting model is a framework used in financial accounting to determine whether a company should consolidate another entity that it does not control through voting rights. The key aspect of this model is whether an entity has the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.
An accurate statement about the variable interest accounting model is that it focuses primarily on evaluating power and economics. This means it considers whether an entity has the power to direct the activities that most significantly affect the economic performance of the VIE and whether the entity can absorb losses or receive benefits that could potentially be significant to the VIE.
Therefore, voting interest control is not necessary; instead, the model looks at other indicators of control. Additionally, an entity's exposure to potentially significant gains and losses is indeed a crucial factor for consolidation under the variable interest model, and the power to direct the entity's key activities is highly relevant to the model.