Project Update

Transfers and Servicing: Repurchase Agreements and Similar Transactions

Last updated on June 16, 2014.  Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.

(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.

Project Objective
*Due Process Documents
*Summary of Decisions Reached to Date
Next Steps
Board/Other Public Meeting Dates
Background Information
Contact Information

Project Objective

The objective of this project is to improve the existing accounting and disclosure guidance on repurchase agreements and other transactions involving a transfer and a forward agreement to repurchase the transferred assets at a fixed price from the transferee to address application issues and changes in the marketplace and to ensure that investors obtain useful information about these transactions.

*Due Process Documents

On June 12, 2014, the Financial Accounting Standards Board issued a new standard to improve the financial reporting of repurchase agreements and other similar transactions: Accounting Standards Update No. 2014-11, Transfers and Servicing (Topic 860)—Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.
On January 15, 2013, the Financial Accounting Standards Board issued proposed Accounting Standards Update, Transfers and Servicing (Topic 860)—Effective Control for Transfers with Forward Agreements to Repurchase Assets and Accounting for Repurchase Financings. Read the summary of feedback received on the proposed Accounting Standards update.
On February 14, 2013 the FASB issued its XBRL Taxonomy Exposure Draft—ASU related to the Proposed Accounting Standards Update—Transfers and Servicing (Topic 860): Effective Control for Transfers with Forward Agreements to Repurchase Assets and Accounting for Repurchase Financings [File Reference 2013-210].

*Summary of Decisions Reached to Date (as of June 16, 2014)

See Update No. 2014-11.

 

Next Steps

None.

Board/Other 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 standard.

March 12, 2014 Board Meeting—Discussion of the issues that have arisen during the drafting of the forthcoming Accounting Standards update on Repurchase-to-Maturity Agreements, Repurchase Financings, and Disclosures.
December 18, 2013
[Revised 06/13/14]
Board Meeting—Discussion of the feedback received from the limited outreach meetings held on the tentative redeliberated decisions of the January 2013 Exposure Draft.
October 2, 2013 Board Meeting—Discussion of its tentative decisions, accounting for repurchase financings, the substantially-the-same characteristics for effective control, a disclosure package, and transition.
May 23, 2013 Board Meeting—Feedback received from comment letters on proposed Accounting Standards Update and the next steps for the project
December 12, 2012 Board Meeting—Held-to-maturity securities transferred in a repurchase agreement that settles at the maturity of the transferred securities
November 7, 2012 Board Meeting—Complexity, permission to ballot, transition and comment period for a proposed Accounting Standards Update
October 3, 2012 Board Meeting—Accounting repurchase financings and types of transfers with repurchase agreements requiring secured borrowing accounting
September 5, 2012 Board Meeting—Disclosure for certain repurchase agreements and other transfers with forward agreements to repurchase transferred assets
August 1, 2012 Board Meeting—Accounting for repurchase agreements that involve similar but not identical financial assets and agreements that do not meet the criteria for secured borrowing accounting
June 27, 2012 Board Meeting—Accounting for repurchase agreements involving identical financial assets
March 21, 2012 Board Meeting—Agenda decision announcement

Background Information

FASB Accounting Standards Codification® Topic 860, Transfers and Servicing, provides the guidance for making the determination for whether transfers of financial assets under repurchase agreements meet the criteria for secured borrowing accounting or sale accounting. These transactions are evaluated to determine which party has control over the financial assets. The assessment of these transactions typically rests on whether the transferor has “effective control” over the transferred financial assets.

In April 2011, the FASB issued Accounting Standards Update No. 2011-03, which amended Topic 860. The Update removed the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee, as well as the collateral maintenance implementation guidance related to that criterion. The new requirements are effective for interim or annual periods beginning on or after December 15, 2011.

Contact Information 

Nga Zimmerman
Assistant Project Manager
nlzimmerman@fasb.org

Rosemarie Sangiuolo
FASB Project Consultant
rsangiuolo@fasb.org

Alex Debbink
Postgraduate Technical Assistant
amdebbink@fasb.org

David M. Shaw
XBRL Assistant Project Manager
dmshaw@fasb.org