U.S. GAAP Codification of Accounting Standards Guide by AccountingINFO.com

U.S. GAAP Codification of Accounting Standards

Principles of Accounting, Intermediate Financial Accounting, U.S. GAAP Textbook

Accounting by Topic, Accounting Terms Dictionary

U.S. GAAP Accounting Standards
Codification Topic 860-20: Sale of Financial Assets

Codification Topic 860-20
Sale of Financial Assets

Accounting for Servicing of Financial Assets

SFAS 166 amended SFAS 140 in June 2009
SFAS 156 amended SFAS 140 in March 2006
SFAS 140 replaced SFAS 125 in September 2000

SFAS 166, June 2006
"Accounting for Transfers of Financial Assets"
an amendment o FASB Statement No. 140

SFAS 156, March 2006
"Accounting for Servicing of Financial Assets"
an amendment of FASB Statement No. 140

SFAS 140, September 2000
"Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities"
a replacement of FASB Statement No. 125

SFAS 125, June 1996
" Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities"

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)
(A) transfer of an entire financial asset
(B) transfer of a group of entire financial assets
(C) 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

Codification Topic 860
Transfers and Servicing

Subtopics of Codification Topic 860

   860-10 Overall
   860-20 Sales of Financial Assets
   860-30 Secured borrowing and collateral
   860-40 Transfers to qualifying special purpose entities
   860-50 Servicing assets and liabilities

Accounting Terms of Codification Topic 860-10

   Affiliate
   Agent
   Attached call option
   Beneficial interests
   Cleanup call option
   Collateral
   Consolidated affiliate
   Consolidated affiliate of the transfer
   Continuing involvement
   Controlled amortization method
   Derecognize
   Dollar-roll repurchase agreement
   Embedded call option
   Equitable right of redemption
   Financial Asset
   Financial liability
   Fixed participation method
   Floating participation method
   Freestanding call option
   Government national mortgage association rolls
   Liquidation
   Loan participation
   Loan syndication
   Nonpublic entity
   Preset participation method
   Publicly traded entity
   Qualifying special-purpose entity
   Recourse
   Repurchase agreement
   Repurchase financing
   Revolving-period securitizations
   Securitization
   Seller
   Transfer
   Transferee
   Transferor
   Undivided interest
   Unilateral ability

Accounting Terms of Codification Topic 860-20

   Derivative financial instrument
   Financial instrument
   Interest-only strip
   Proceeds
   Security

Accounting Terms of Codification Topic 860-30

Security interest

Accounting Terms of Codification Topic 860-40

   Commingling
   Condominium structure
   Guaranteed mortgage securitization

Accounting Terms of Codification Topic 860-50

   Adequate compensation
   Benefits of servicing
   Contractually specified servicing fees
   Protection provisions
   Servicing assets
   Servicing liabilities