SUMMARY OF BOARD DECISIONS

Summary of Board decisions 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 are included in an Exposure Draft for formal comment only after a formal written ballot. Decisions in an Exposure Draft may be (and often are) changed in redeliberations based on information provided to the Board in comment letters, at public roundtable discussions, and through other communication channels. Decisions become final only after a formal written ballot to issue an Accounting Standards Update.

October 6, 2010 FASB Board Meeting

Transfers and servicing—repurchase agreements. The Board discussed amending or removing the “transferor ability” criterion that is currently considered when determining whether a transferor of financial assets has maintained effective control for transactions involving repurchase agreements. The “transferor ability” criterion is the existing requirement that the transferor is able to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee.

The Board tentatively decided to remove the “transferor ability” criterion and its related application guidance from the effective control guidance applicable to transactions involving repurchase agreements.

The Board directed the staff to draft a proposed Accounting Standards Update for vote by written ballot. The Board discussed the effective date, transition method, and comment period for the proposed Update. The Board tentatively decided that:
  1. The proposed Update would be applied prospectively to both new transactions and existing transactions that are modified after the effective date.
     
  2. Early adoption would be prohibited.
     
  3. The final Update would be effective as of the beginning of the first interim period after its issuance. The final Update is expected to be issued during the first quarter of 2011.
     
  4. The comment period for the proposed Update will end January 15, 2011.