As a student of accounting it is important to know when to consolidate entities

As a student of accounting it is important to know when to consolidate entities and it is also important to know the GAAP regulations on consolidation. If the voting interest does not apply (greater than 50% ownership) the risk-and-reward model is used to see if the company stands to gain in the economies of another company. If the answer is yes then it needs to consolidate. This introduced the notion of a variable-interest-entity (VIE). Answer the following:Grandeur a utility company has a contract to purchase all of the power generated by the local companies over its lifetime.