Last week the Financial Accounting Standards Board released its modifications to Financial Interpretation No. 46, a much-anticipated draft, though very little has changed for securitization, industry professionals said.

As anticipated, the Board will add the "information out" provision, which, essentially, allows a company to forgo FIN 46 on SPEs created before February 2003 if the company is unable to gather enough information to determine whether the entity in question is a variable interest entity, and whether its involvement deems it the primary beneficiary of the entity. FASB stresses that it expects minimal use of this exemption, "especially if the enterprise was involved in the creation of the entity."

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