Since the financial crisis, the securitization market continues to be faced with uncertainty. Even as participants are able to start putting some of the puzzle pieces together, many are still unaware of what the final picture will look like or even if all the pieces will perfectly fit. Yet, the pace of recovery continues to accelerate and accounting issues remain at the forefront.
What to expect
The earliest editions of this publication were small pamphlets focused on major accounting changes impacting how securitizations were reported on the financial statements. Over the years, we have added coverage of taxes and various regulatory changes impacting securitization accounting and the overall markets. We continue that trend in this edition by adding new topics while continuing to robustly update previously covered events.
This edition covers
- New issues facing the market resulting from the continued convergence work on accounting for financial instruments by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB)
- In-depth International Financial Reporting Standards accounting analysis for securitizations as more market participants report under International Accounting Standards versus U.S. Generally Accepted Accounting Principles (GAAP)
- Incremental additions to required disclosures on securitization transactions and additional clarity on treatment of consolidated securitizations for those following GAAP
- How the FASB and IASB proposals for the measurement and classification of financial instruments, which are due in the near term, could impact market participants
- Changes to the consolidation paradigm that could force deconsolidation of many previously consolidated securitizations
- The impact of risk-based capital (Basel III)
- Much more
What you'll find inside
Chapter 1 - What's new since the last edition?
Chapter 2 - Who has to consolidate the special purpose entity?
Chapter 3 - Does my securitization meet the sale criteria under GAAP?
Chapter 4 - How do securitizations fare under IFRS?
Chapter 5 - How about some examples?
Chapter 6 - How do you determine gain or loss on a sale?
Chapter 7 - What should I know about mortgage servicing rights?
Chapter 8 - What about the investors?
Chapter 9 - How do I measure and report fair value information?
Chapter 10 - So where is the transparency?
Chapter 11 - How will taxes impact my transaction?
Chapter 12 - How does securitization impact banks' regulatory capital?
Chapter 13 - What's on the horizon?
Appendix - Contacts
Certainly, there will be much more to write about and share in valued dialogue with all market constituents in the coming months and years and the electronic version of this edition will make it easier to send out periodic updates. It also makes it possible to electronically link additional information for further reference.