With six Q&A sessions already dedicated to discussing the nature of its implementation guidelines, International Accounting Standards (IAS) 39 is beginning to stir up much hesitation over how it may potentially change the allure of future European securitizations.

Designed to establish the fundamentals for recognizing, measuring and disclosing information about financial liabilities, IAS 39 addresses the issue of control over transferred assets. According to panelists at the recent Barcelona ABS conference, the rule declares that if the transferor of assets to an SPV is considered to control those assets, then the SPV would have to be consolidated on the balance sheet of the issuer.

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