Financial Accounting Standards Board Amends FAS 140 and FIN 46(R)

July 23, 2009
After many years of uncertainty regarding the treatment of financial assets transferred to and held by special purpose vehicles, the Financial Accounting Standards Board recently issued two new standards that will materially impact the way reporting entities account for transfers of financial assets and off-balance sheet vehicles. This update summarizes some of the significant revisions to the accounting standards and provides commentary on these momentous changes, focusing in particular on how the new standards will impact banks and other financial institutions that engage in transactions that include the transfer of financial assets to special purpose entities.