The Financial Accounting Standards Board just released three exposure drafts.

These are: the Accounting for Transfers of Financial Assets, which is an amendment
of FASB Statement No. 140, the Disclosures About Transfers of Financial Assets and Interests in Variable Interest Entities and the Amendments to FASB Interpretation No. 46(R).

The first exposure draft will amend Statement 140 to revise and clarify the derecognition requirements for transfers of financial assets as well as the initial measurement of beneficial interests that are received as proceeds by a transferor that are related to financial asset transfers. This proposed Statement would also enhance the disclosure requirements to offer users of financial statements with greater transparency regarding transfers of financial assets and a transferorÂ’s continuing involvement with such transferred financial assets.

The purpose of the second proposed FASB Staff Position (FSP) is to require improved

disclosures by public entities until the pending amendments to FASB Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, and FASB Interpretation No. 46 , which was revised December 2003,

Consolidation of Variable Interest Entities, are effective. This proposed FSP would

amend Statement 140 and Interpretation 46(R) to require enhanced disclosures by public

entities regarding financial asset and interest transfers in variable interest entities.


The third proposed Statement would amend FASB Interpretation No. 46 (revised December 2003) called the Consolidation of Variable Interest Entities. This requires ongoing assessments to determine whether an entity is a variable interest entity and whether an enterprise is the primary beneficiary of a variable interest entity, the FASB stated.


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