|
Section 4411: Sale of Financial Assets
[U.S. GAAP Codification Topic]
325-40 Beneficial interests in securitized financial assets
860 Transfers and servicing
860-10 Overall
860-20 Sales of financial assets
860-30 Secured borrowing and collateral
860-40 Transfer to qualifying special purpose entities
860-50 Servicing assets and liabilities
[U.S. GAAP before the Codification]
SFAS 76, 77, 122, Superseded by SFAS 125 in 1996
SFAS 125, June 1996, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, Superseded by SFAS 140 in 2000
SFAS 140, September 2000, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, a replacement of FASB Statement No. 125
SFAS 155, February 2006, Accounting for Certain Hybrid Financial Instruments, an amendment of FASB Statements No. 133 and 140
SFAS 156, March 2006, Accounting for Servicing of Financial Assets, an amendment of FASB Statement No. 140
SFAS 159, February 2007, The Fair Value Option for Financial Assets and Financial Liabilities, including an amendment of FASB Statements No. 115
1. Amendments to SFAS 140 by SFAS 166 in June 2009
(1) The concept of Qualifying Special Purpose Entities (QSPE) was removed
--> Paragraphs 34 - 46 were deleted.
(2) Financial components approach was modified
The application of sale accounting is limited to (a), (b), (c)
(2a) transfer of an entire financial asset
(2b) transfer of a group of entire financial assets
(2c) transfer of a participating interest in an entire financial asset
--> Paragraph 8B of SFAS 140 defines the "participating interest"
(3) The conditions to determine whether the control was surrendered
--> were amended for clarification
--> Paragraph 9 of SFAS 140
(4) Additional disclosures
--> Paragraphs 16B - 16D were added
2. Amendments to SFAS 140 by SFAS 156 in March 2006
--> Servicing Assets and Liabilities
(1) Initial measurement
Servicing Assets (SA) and Servicing Liabilities (SL) are
--> initially measured at fair value
(2) Subsequent measurement
(2a) Before SFAS 156,
--> SA and SL are subsequently measured at amortized cost
(2b) SFAS 156 provides
--> a Fair Value Option for SA and SL
(2c) Entities have a choice of (A) or (B):
--> (A) Amortized cost
--> (B) Fair value
(3) Separate presentation of SA and SL
--> subsequently measured at fair value
|