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.

March 22, 2011 FASB Board Meeting

Transfers and servicing—repurchase agreements. The Board discussed comments received from respondents to the November 2010 Exposure Draft, Transfers and Servicing (Topic 860): Reconsideration of Effective Control for Repurchase Agreements. The Board made the following decisions: 

  1. Affirmed the project scope—that its focus would be limited to reexamining the certain guidance for determining whether a transferor has maintained effective control over a transferred asset. 
  2. Affirmed its previous decision to eliminate the existing criterion that requires a transferor to be able to repurchase or redeem a transferred asset on substantially the agreed terms, and related implementation guidance. 
  3. Considered additional disclosures suggested by certain respondents, but decided not to change existing disclosure requirements in this limited scope project. 
  4. Affirmed that all entities would apply the revised guidance prospectively to transactions or modifications of existing transactions that occur on or after the first interim or annual period beginning December 15, 2011. Early adoption will not be permitted. 
  5. Decided to clarify that a reporting entity should apply the transition guidance on a transactional basis as opposed to a broader set of multiple transactions, such as a master netting arrangement.
The Board directed the staff to draft a final Accounting Standards Update for vote by written ballot.