Items Tagged with 'Accountancy'

ARTICLES

  • ABA Raises Concerns on FASB, IASB Accountancy Changes

    Major accountancy changes and overhauls may take several years to implement across wide markets due to the complex nature of the instruments affected. Therefore, financial accounting boards in markets across the globe are taking the opportunity to begin revising rules in the midst of a lull in the securitization markets.
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  • $150bn of Assets May Return to BofA's Balance Sheet in 2010

    Bank of America [stock BAC][/stock] may soon bring some $150bn of off-balance-sheet assets back onto its balance in Q110 with the implementation of a new accounting rule, FAS 167, potentially pressuring its capital reserves. Of the assets the bank says it may bring to its balance sheet, home equity conduits account for an estimated $12bn, while card securitizations account for $85bn, and other variable interest entities make up the remaining $53bn, according to an equity research note by Keefe, Bruyette & Woods' (KBW) Jefferson Harralson.
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  • Levitt: Proposed Accounting Changes Will 'Obscure' Impairments

    Former Securities and Exchange Commission chairman Arthur Levitt fired a strong volley Thursday morning against the so-called mark-to-market lobby in a Washington Post op-ed, saying that proposed changes to key accounting rules governing the valuation of distressed assets would "obscure" and potentially "bury" the full extent of impairments on bad loans and ill-advised investments made by banks and other financial institutions.
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  • FASB Acts!

    At last week’s House hearing on mark-to-market accounting, representatives from both sides of the aisle blamed accounting standards for skewering bank balance sheets and demanded, as Congressman Paul Kanjorski (D-PA) put it, that “the Financial Accounting Standards Board and the Securities and Exchange Commission to do the jobs they are required to do. Emergency situations require expeditious action, not academic treatises. They must act quickly.”
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  • OTTI Rules Tweaked or Sharpened?

    It appears a cranky FASB, responding to a flood of comments -- some ill-informed, a bunch form letters -- added a few teeth to what had been looking like a technical fix to other-than-temporary-impairment guidance for securitized assets. Last week the Financial Accounting Standards Board voted to issue FSP EITF 99-20-a, Amendments to the Impairment and Interest Income Measurement Guidance of EITF 99-20, but with additional language not included in the exposure draft.
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  • The Slow March to End Securitization Inches Forward

    In a feature in the very first issue of HousingWire Magazine, out this week, 15-year MBS/ABS veteran Linda Lowell tackles the question that's on most mortgage participants mind: is mortgage securitization dead? The complex answer to this question may very well lie with the Financial Accounting Standards Board and its coming proposals that will modify two separate but related standards that govern off-balance sheet securitization.
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  • Wall Street Execs Weigh in on Securitization Accounting

    In plain English, much of the securitization model that has fueled the modern mortgage market is tied to what's known as a Qualifying Special Purpose Entity -- or QSPE for short, and often called "the Q" in industry slang. QPSEs receive off-balance sheet treatment, or "sale accounting" treatment, that has largely enabled much of the growth in modern secondary markets.
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  • FASB May Delay Action on QSPEs

    In the acronym soup that's been confronting investors since the mortgage and credit mess began, perhaps none will end up more critical than the QSPE -- that's qualifying special purpose entity, a concept borne of accounting rules that allow banks and financial institutions to keep certain assets off of their balance sheets. Like MBS/ABS, for example.
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