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Perspectives

Securitization accounting: Tenth edition

A new update on the landscape of securitization

We live in an exciting time for the securitization market. Clarity continues to forge ahead within securitization accounting and a “new” landscape is beginning to take shape. Although the industry continues to face unique challenges while navigating through the new terrain, the importance and benefits of the overall securitization process are beyond question.

What to expect

We remain strong in our belief that accounting will play a significant role in securitization and remain embedded in its evolving foundation. Therefore, it is our pleasure to share with you this tenth edition of our Securitization Accounting book. Our mission has always been to provide a roadmap that covers accounting, tax, and various regulatory changes impacting securitization and the overall markets. We feel that we have met this goal once again with this new publication.

This edition covers

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.

More expansive updates in this edition includes a detailed discussion related to: 
  • The latest changes to consolidation guidance and some unique complexities in consolidation analysis and determination
  • Fair value guidance of assets and liabilities and some structure around market questions related to inconsistencies with typical fair value techniques
  • Regulatory changes and the interplay of such rules to accounting principles

While we continue to cover up-to-date issues, the Financial Accounting Standards Board and International Accounting Standard Board are hard at work with projects that may have a future impact on securitization. To that, we address some projects that may result in market participants facing challenges for the classification and measurements of financial instruments and impairment of financial assets.

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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

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Looking ahead

Certainly, there will be much more to write about and share in valued dialogue with all market constituents in the coming months and years as securitization accounting evolves. We will continue to provide a point of view about these changes, sending out periodic updates and providing links to additional information for further reference when available.

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