Financial Reporting Developments A Comprehensive Guide 2015
Published September 29, 2016
We are pleased to provide you with the latest edition of our Financial Reporting Developments publication on accounting for transfers and servicing of financial assets. This publication has been updated primarily to reflect the amendments resulting from the issuance of ASU 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings and Disclosures and for further clarification and enhancements to our interpretative guidance.
Applying ASC 860 in practice continues to be challenging. ASC 860’s scope is wide and applies to more than just securitizations. Moreover, ASC 860 relies in part on legal interpretations to determine the accounting for the transfer. Additionally, a transferor’s continuing involvement — which can vary significantly from transaction to transaction — will also affect the accounting analysis, requiring a complete understanding of both the business purpose and the form of the transaction.
This publication includes excerpts from and references to the FASB’s Accounting Standards Codification, interpretive guidance and examples. Practice continues to develop and additional authoritative guidance in this area could be issued subsequent to the issuance of this publication. While we will update this publication as additional authoritative guidance is issued, affected entities and interested parties should closely monitor developments in this area.
Entities that are often involved in transfers and servicing of financial assets may be familiar with many of the issues described in this publication. However, others may need the assistance of professional advisors to navigate through the accounting implications of terms and conditions associated with complex securitization and/or transfer arrangements. EY professionals are available to answer your questions and discuss any concerns you may have.
Ernst & Young
Guide on Transfers of Financial Assets (2.05 MB / pdf)