Securitization Accounting

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.

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, coverage of taxes and various regulatory changes impacting securitization accounting and the overall markets have been added. That trend continues in this edition with new topics and continuing robust updates of 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)