U.S. GAAP Codification of Accounting Standards

U.S. GAAP Codification Accounting Standards, ASC

Principles of Accounting Intermediate Financial AccountingU.S. GAAP Textbook
Accounting by Topic Accounting Terms Dictionary

U.S. GAAP Accounting Standards
Codification Topic 860-50: Servicing Assets and Liabilities

Codification Topic 860-50
Servicing Assets and Liabilities

Accounting for Servicing of Financial Assets

SFAS 156 amended SFAS 140 in March 2006
SFAS 140 replaced SFAS 125 in September 2000

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 156 in March 2006

1. Initial measurement
Servicing Assets (SA) and Servicing Liabilities (SL) are
--> initially measured at fair value

2. Subsequent measurement
Before SFAS 156, 
--> SA and SL are subsequently measured at amortized cost

SFAS 156 provides 
--> a Fair Value Option for SA and SL

Entities have a choice of (A) or (B):
--> (A) Amortized cost
--> (B) Fair value

3. Separate presentation of SA and SL
--> subsequently measured at fair value

   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
   Attached call option
   Beneficial interests
   Cleanup call option
   Consolidated affiliate
   Consolidated affiliate of the transfer
   Continuing involvement
   Controlled amortization method
   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
   Loan participation
   Loan syndication
   Nonpublic entity
   Preset participation method
   Publicly traded entity
   Qualifying special-purpose entity
   Repurchase agreement
   Repurchase financing
   Revolving-period securitizations
   Undivided interest
   Unilateral ability
Accounting Terms of Codification Topic 860-20
   Derivative financial instrument
   Financial instrument
   Interest-only strip
Accounting Terms of Codification Topic 860-30
   Security interest
Accounting Terms of Codification Topic 860-40
   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

   Other Topics at the Codification 800 
Accounting Standards Codification, ASC, Overview
ASC Codification Topic 805: Business Combinations
ASC Codification Topic 808: Collaborative Arrangements
ASC Codification Topic 810: Consolidation
ASC Codification Topic 815: Derivatives and Hedging
ASC Codification Topic 820: Fair Value Measurements and Disclosures
ASC Codification Topic 825: Financial Instruments
ASC Codification Topic 830: Foreign Currency Matters
ASC Codification Topic 835: Interest
ASC Codification Topic 840: Leases
ASC Codification Topic 845: Nonmonetary Transactions
ASC Codification Topic 850: Related Party Disclosures
ASC Codification Topic 852: Reorganizations
ASC Codification Topic 855: Subsequent Events
ASC Codification Topic 860: Transfers and Servicing

   U.S. GAAP Codification of Accounting Standards
Accounting Standards Codification, ASC, Overview
ASC Codification 200: Presentation
ASC Codification 300: Assets
ASC Codification 400: Liabilities
ASC Codification 500: Equity
ASC Codification 600: Revenue
ASC Codification 700: Expenses
ASC Codification 800: Broad Transactions
ASC Codification 900: Industry

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