To short-circuit any further Lehman-like treatment of repurchase agreements, the Financial Accounting Standards Board has published a proposed accounting standards update that would more explicitly explain how to account for transactions with an obligation to repurchase an asset.
In Proposed ASU: Transfers and Servicing (Topic 860) – Reconsideration of Effective Control for Repurchase Agreements, the FASB proposes amendments to existing guidance that would affect all companies that transfer a financial asset with both a right and an obligation to repurchase or redeem the asset before maturity. FASB is accepting comments through Jan. 15, 2011.
