Project Updates
Repurchase Financing Agreements
Last Updated: February 26, 2008 (Updated sections are indicated with an asterisk *)
The staff has prepared this summary of Board decisions for information purposes only. Those Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.
Objective
*Due Process Documents
*Decisions Reached at the Last Meeting
*Summary of Decisions Reached to Date
Board Meeting and Public Meeting Dates
History and Background
Contact Information
Objective
The objective of this project is to provide implementation guidance on whether there are circumstances that would permit a transferor and a transferee to evaluate the accounting for a transfer of a financial asset separately from a repurchase financing.
*Due Process Documents
The Board issued the final FASB Staff Position (FSP) 140-3, Accounting for Transfers of Financial Assets and Repurchase Financing Transactions, on February 20, 2008.
Final FSP
*Decisions Reached at the Last Meeting
See minutes below.
*Summary of Decisions Reached to Date
See FSP FAS 140-3.
Board Meeting and Public Meeting Dates
The Board meeting minutes are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final Statement, Interpretation, or FSP.
The following are links to the minutes for each meeting.
| January 16, 2008 |
Board Meeting—Repurchase Financing Agreements—Repurchase Financing Agreements—External Resource Group |
| November 14, 2007 |
Board Meeting—Repurchase Financing Agreements—Comment Letter Analysis |
| July 18, 2007 |
Board Meeting—Repurchase Financing Agreements—Comment Period |
| June 13, 2007 |
Board Meeting—Repurchase Financing Agreements—Disclosure, Effective Date, Comment Period |
| May 30, 2007 |
Board Meeting—Repurchase Financing Agreements—Transition and Effective Date |
| May 8, 2007 |
Board Meeting—Repurchase Financing Agreements—Agenda Decision |
| March 14, 2007 |
Board Meeting—Repurchase Financing Agreements |
History and Background
As financial markets have evolved, transactions involving repurchase agreements have become more complex. Such transactions include repurchase financings, which are defined as repurchase agreements relating to previously transferred financial assets between the same counterparties. In practice some of these transfers and repurchase financings were accounted for separately even though they had been transacted in contemplation of one another.
In March 2006, the EITF Agenda Committee was asked to reconsider the guidance in Statement 140 for such transactions as a result of constituent questions about whether transfers and repurchase financing transactions should be accounted for as one complete transaction or two separate transactions under the provisions of Statement 140. The Agenda Committee deferred making a decision on this issue pending the Board’s decision to add a project relating to this issue.
In March 2007, the Board added a project to its agenda that would provide guidance related to the accounting for repurchase financing agreements.
Contact Information
Patricia Donoghue
Project Manager
padonoghue@fasb.org
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