Preface

We are pleased to present the 2025 edition of Transfers and Servicing of Financial Assets, which provides an overview of the FASB’s authoritative guidance, as well as our insights and interpretations, on (1) the transferor’s and transferee’s accounting for a transfer of financial assets or servicing rights and (2) the servicer’s accounting for a right or obligation to service financial assets.

It can be time-consuming and complex to appropriately account for a transfer of financial assets or servicing rights because of the need to consider both legal and accounting rules and interpretations. To properly apply U.S. GAAP to such a transaction, an entity must closely analyze the transaction’s terms and conditions as well as the related facts and circumstances. As part of such an analysis, an entity often must consult legal experts to determine whether a transfer of financial assets represents a sale under relevant law. The outcome of the analysis could significantly affect the classification, measurement, and earnings impact of the transaction as well as the related financial statement ratios.

No significant updates were made to the 2025 edition of this Roadmap, other than clarifications on accounting for transfers of collateral as well as additional considerations related to certain digital assets that could represent financial assets and therefore could be subject to the guidance in ASC 860.1 These revisions are highlighted in Appendix D.

We hope you find this Roadmap a useful resource in applying the guidance, and we welcome your suggestions for future improvements. If you need assistance with applying the guidance on transfers and servicing of financial assets or have other questions about this topic, we encourage you to consult our technical specialists and other professional advisers.