FASB Update on Repo Reporting

On April 29, FASB issued an Accounting Standards Update on financial reporting of repurchase agreements and other agreements that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. The update removes from the assessment of effective control the requirement that the transferor have the ability to repurchase or redeem the financial assets. FASB Release.

FASB Update on Troubled Debt Restructurings

On October 12, FASB issued an Exposure Draft of a proposed Accounting Standards Update to increase transparency in financial reporting about troubled debt restructurings.  The update proposes guidance to assist creditors in determining whether a modification of a receivable’s terms meets the criteria to be considered a troubled debt restructuring for purposes of recording an impairment and for disclosure of troubled debt restructurings. FASB Release.

FASB Letter on Lehman Repos

On April 19, the FASB sent a letter to the House Financial Services Committee on selected accounting guidance relevant to Lehman accounting practices.  The letter summarized the current accounting and reporting standards relating to repurchase agreements and consolidation of SPEs and, in particular, discussed Lehman’s Repo 105 and Repo 108 transactions.  FASB Letter.

FASB Update on Fair Value Standards

On January 21, the FASB issued an Accounting Standards Update (ASU) amending the Accounting Standards Codification Subtopic 820-10 (originally FAS 157), Fair Value Measurements.  The ASU requires new disclosures regarding transfers into and out of Levels 1 and 2 and separate disclosures about purchases, sales, issuances, and settlements relating to Level 3 measurements.  It also clarifies the level of disaggregation and types of disclosure about inputs and valuation techniques that should be provided with respect to existing disclosure requirements.  ASU.

Proposed Delay of FAS 167 for Investment Funds

On December 4, FASB issued an exposure draft that proposes to delay the effective date of FAS 167 for some funds (possibly including mutual funds, hedge funds, private equity funds, and venture capital funds) until late 2010 when the joint IASB/FASB consolidation project is completed. Securitization entities, asset-backed financing entities, or entities which were qualifying special purpose entities (QSPEs) are not affected by the proposal. FASB also similarly deferred the effective date of FAS 167 for money market mutual funds that must comply with Rule 2a-7 of the Investment Act. Comments are requested by January 6, 2010. FASB Exposure Draft. FASB Summary.