FASB decides to eliminate QSPEs and modify consolidation model
20 Jun 2008
The US FASB has decided to amend its Statement No. 140 'Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities and Interpretation No. 46(R) Consolidation of Variable Interest Entities' to make the following important changes, among others:
- Remove the concept of a qualifying special-purpose entity (QSPE) from Statement 140 and the related scope exceptions from Interpretation 46(R)
- Changes the derecognition provisions in paragraph 9 of Statement 140
- Modify the consolidation model in Interpretation 46(R)