Companies outside the financial services industry may want to pay heed to new securitization rules that, under the surface, extend far beyond bank balance sheets.
The Financial Accounting Standards Board adopted two new accounting standards in June designed to curb off-balance sheet treatment of the pooling and trading of financial assets—Financial Accounting Standard No. 166, Accounting for Transfers of Financial Assets, and FAS 167, Amendments to FASB Interpretation No. 46(R). (They now are contained in the Accounting Standards Codification under Sections 810 Consolidation and 860 Transfers & Servicing.)
