Dear Maani, Hi
Consider ABC plc has acquired 10% shares of XYZ plc. Since XYZ plc falls below the associate status or subsidary status, so XYZ plc shall not be consolidated in ABC plc financial statements. If due to any reason by being related party, or by having a competent representative on board of XYZ, ABC plc can significantly influence the policies and operations of XYZ then It would be competent to structure transactions and transfer losses to XYZ. Similarly higher tsale pricing and asset stripping is also possible. Thus XYZ is a special purpose vehicle.
Another special purpose vehicle can be in monotized transactions.
