The new accounting rules will make it more difficult for companies to repeat the aggressive accounting of Lehman`s deposits. The increased transparency afforded by the new rules should allow investors and analysts to better understand the companies that use reaner transactions. This does not eliminate the risk of repurchase transactions, but underscores the need for ongoing monitoring and monitoring to prevent future abuses. 3. For an agreement with a settlement date at the maturity of the transferred financial asset, a cash change equal to the withdrawal or clearing value of the financial assets initially transferred by the transferor to the assignor and the transfer of the fixed redemption price from the transferor to the transferor (or the difference between those amounts). . 6 In April 2011, the FASB issued the update of accounting standards No. 2011-03, a review of the effective control of pension transactions which, from us-GAAP, removes the requirement for companies to verify whether a seller (i.e. seller) has the opportunity to repurchase or repurchase the financial assets on essentially agreed terms, even if the purchaser defaults to default payment. , in a repo if the seller maintained effective control and therefore counted the pension as a guaranteed loan, as a sale (with a forward contract).
In April 2011, the Financial Accounting Standards Board („FASB“) released the accounting standards update („ASU“) no. 2011-03 Transfers and Services (Topic 860), reconsideration of Effective Control for Repurchase Agreements (the „Update“). ASU 2011-03 amends faSB Codification Topic 860 accounting standards, in particular the criteria required to determine whether a pension repurchase agreement (Repo) and similar agreements should be accounted for as sales of N`s financial assets or secured bonds with obligations. International Accounting Standards („IAS“)39 does not require consideration of a ceder`s ability to repurchase or repay transferred financial assets on essentially agreed terms, even if the purchaser is late, in order to determine the maintenance of effective control over the transferred assets. The update changes improve convergence by removing the need to consider this criterion from U.S. GAAP. The new direction was surprisingly supported by financial institutions. Chart 3 summarizes responses received from the FASB from two requests for advice. The first exposure project for the purpose of effective control of pension operations (November 2010) is expected to change the criteria for the introduction of effective control.
It resulted in comments containing proposals that were then included in the final standard („FASB proposes new accounting guidelines for rest,“ KPMG Defining Issues, January 2013, No. 13-6). In particular, the massive support for the proposal in 2010 should be highlighted. The eight responses of the public audit firm can be qualified either in favour of the proposal or in favour of the proposal. Out of a total of 19 responses, 16 can be labelled as preferred or qualified for the proposal. However, the second exhibition project, Effective Control for Transfers with Forward Agreements to Healthcare Assets and Accounting for Repurchase Financings (January 2013), received more mixed support. The transfer and maintenance guide describes the accounting of financial assets, including securitizations, repurchase transactions and other transactions.