FASB Votes To Retain 2010 Effective Date On Securitization, Asset Transfer Rules
May 18, 2009
At its May 18, 2009 board meeting, the Financial Accounting Standards Board voted to retain the effective date of its upcoming amendments to FAS 140, Transfers of Assets, and FIN 46R, Consolidation of Variable Interest Entities, such that the new standards - widely reported* to potentially place billions of dollars of off-balance sheet securitizations back on the balance sheet – will be effective as of the beginning of 2010. (Technically, the effective date is as of the beginning of the first fiscal year beginning after Nov. 15, 2009.) * The ‘billions” amount was cited most recently in Ian Katz’ report in Bloomberg earlier today: FASB Will Force Banks To Move Assets to Balance Sheets. Katz noted that FASB had already provided some relief from its earliest leanings which would have required implementation of some of the amendments this year, when FASB voted last July to propose an effective date of 2010 in the Exposure Drafts released in Sept. 2008. Thus, today’s vote reaffirms the 2010 date effective date as proposed in the Exposure Drafts.
FASB voted on a number of additional changes to its upcoming amendments to FAS 140 and FIN 46R at its May 18 meeting, and separately, discussed projects on Leasing and Insurance Contracts.
For details from the FASB board meeting, see this FEI Summary; see also FASB’s Summary of Board Decisions.
FASB also issued this FASB Briefing Paper (aka ‘plain English summary’) earlier today, which provides a high level explanation of the forthcoming amendments to FAS 140 and FIN 46R.
Learn more about FASB's new and proposed standards on FEI's What's New With FASB? webcast June 9, featuring FASB Technical Director Russell Golden, Deloitte Partner Bob Uhl, Ernst & Young Partner Carlo Pippolo, and moderator Steve Burkholder of BNA. The webcast is free for FEI members, $50 for nonmembers; 1.5 CPE is available; advance registration is required.
Prepared May 18, 2009 by Edith Orenstein, director, Accounting Policy Analysis, Financial Executives International (FEI). This summary does not represent FEI opinion unless specifically noted above.