Accounting for Securitization

This chapter contains sections titled: Securitization accounting in flux The Basic Accounting rule: Substance over form Development of accounting principles on securitization Sale treatment vs. loan treatment Preconditions for sale treatment: A wrap-up of various accounting standards Preconditions for sale accounting: A synthetic approach Qualifying SPV Sale-treatment: Balance sheet and revenue impact Retained interest valuation in a real life case Gain on sale accounting: Guesswork? IAS 39 revised and securitization Financing treatment and linked treatment Comparative view of sale and financing treatment Disclosures by the originator Accounting for the SPV Consolidation of SPV accounts with the originator Consolidation of variable interest entities under U.S. gaps Attaining sale treatment for accounts and loan treatment for taxes Accounting for revolving asset securitizations Accounting for future flow securitization Investor accounting Other securitization accounting standards Servicing rights and QSPE amendments Appendix 1: Extracts from FRS 5: UK Accounting Standards Board Notes