|
 |
FASB to Replace Asset Transfer Statement NORWALK, Conn., Oct. 5, 2000 (SmartPros) Transfers of financial assets have grown in recent years, prompting the Financial Accounting Standards Board to replace Statement 125 with Statement 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. According to FASB, the transfers of financial assets in which the transferor has some continuing involvement with the transferred assets or with the transferee, have grown in volume, variety and complexity. Those transfers raise issues of whether transferred financial assets should be considered to be sold and a related gain or loss recorded, whether the assets should be considered to be collateral for borrowings, or whether the transfer should be accounted for at all. Statement 125, issued in June 1996, addressed some of those issues, but Statement 140 resolves those implementation issues, said FASB. "When Statement 125 was applied in practice to securitizations of financial assets such as credit card balances and trade receivables, several accounting issues arose about special-purpose entities and about rights to get transferred assets back from them," said Halsey Bullen, FASB's senior project manager. Statement 140 is effective for transfers occurring after March 31, 2001 and for disclosures relating to securitization transactions and collateral for fiscal years ending after Dec. 15, 2000. -- SmartPros News Staff Send comments to information@smartpros.com 2000, Smartpros Ltd. All Rights Reserved. |
|
|
|||||||
|
||||||||||
|
|
||||||||||
|
||||||||||
