QSPEs, Derivatives, and FAS 140

FASB plans to require that, in order to receive sales accounting treatment, a qualifying special purpose entity should be subject to revenue recognition tests only at the time a deal involving derivative securities is made, not on an ongoing basis.

As a summer project, the Financial Accounting Standards Board is preparing an exposure draft of its revision of Financial Accounting Standards No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities.

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