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The Financial Accounting Standards Board has issued an accounting statement that completely replaces FAS 125 (accounting for transfers and servicing of financial assets) and requires new disclosures on securitizations and residual interests.
The new statement (FAS 140) goes into effect Dec. 15 for companies that report on a calendar-year basis, and these companies will have to include the new disclosures in their 2000 annual reports.
Some companies have been volunteering this information on a quarterly basis, but the focus of FAS 140 is annual reports, according to FASB senior project manager Halsey Bullen.
The project to amend FAS 125 first started in 1996. But demands for more disclosures on...