At this Wednesday's meeting, the Financial Accounting Standards Board will discuss issues that have arisen relating to the proposed modification of FIN 46 (estimate 90 minutes), as well as issues related to the re-drafting of the amendment to FAS 140 (estimated 30 minutes).
Meanwhile, it's a mixed bag as to who is and who is not taking advantage of the FIN 46 deferral announced earlier this month.
Bank One Corp. is among the few so far to postpone implementation, announcing last week in a filing with the Securities and Exchange Commission that it was "prepared to consolidate the assets, liabilities, and earnings associated with its asset-backed conduit business as of July 1, 2003. [But as] a result of FASB's recent delay in the implementation date of FIN 46, the Company did not consolidate these entities, but expects to adopt FIN 46 as of December 31, 2003."
Bank One was ready to bring approximately $38 billion in assets onto it balance sheet, which would have had no impact on its capital ratio, but a negative 1% effect on its leverage ratio, which would have declined from 8.4% to 7.4%.
On the other side, JP Morgan Chase moved ahead with FIN 46, stating that, as of Sept. 30, it had consolidated $15 billion in assets, plus $11 billion in commercial loans, both related to its ABCP multi-seller conduits.
Huntington Bancshares also chose to waive the deferral, reporting a net charge $13.3 million related to adopting FIN 46. The company consolidated $1 billion in assets related to securitized auto loans and leases that were previously held off balance sheet.
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