KPMG’s in-depth guide explains how to account for transfers of financial assets, using Q&As and examples to address common questions and transactions we see in practice. This edition includes new interpretations related to a transfer of a portion of an equity share.
- All entities with transfers of financial assets
- Effective immediately
An established model and evolving transactions
In the decades since the FASB first developed its guidance on transfers of financial assets, the capital markets – and the types of transfers that take place in them – have continued to evolve.
The accounting guidance has evolved as well, although the core principles have remained intact: a transaction is recognized as a sale when a financial asset has been transferred and control has been surrendered; and following a sale, a company measures both the benefits it controls and the resulting obligations.
This model is well-established, but the continued evolution of transactions involving transfers of financial assets often pushes the profession to make critical judgments about the application of the guidance.
- Sale criteria: Overview
- Sale criterion: Legal isolation
- Sale criterion: Actual control
- Sale criterion: Effective control
- Secured borrowings
- Special topics
- Servicing assets and liabilities
Download from KPMG FRV