Accounting for Servicing of Financial Assets
SFAS 156 amended SFAS 140 in March 2006
SFAS 140 replaced SFAS 125 in September 2000
SFAS 140 replaced SFAS 125 in September 2000
SFAS 156, March 2006
“Accounting for Servicing of Financial Assets”
an amendment of FASB Statement No. 140
“Accounting for Servicing of Financial Assets”
an amendment of FASB Statement No. 140
SFAS 140, September 2000
“Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities”
a replacement of FASB Statement No. 125
“Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities”
a replacement of FASB Statement No. 125
SFAS 125, June 1996
” Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities”
” Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities”
Amendments to SFAS 140 by SFAS 156 in March 2006
1. Initial measurement
Servicing Assets (SA) and Servicing Liabilities (SL) are
–> initially measured at fair value
Servicing Assets (SA) and Servicing Liabilities (SL) are
–> initially measured at fair value
2. Subsequent measurement
Before SFAS 156,
–> SA and SL are subsequently measured at amortized cost
Before SFAS 156,
–> SA and SL are subsequently measured at amortized cost
SFAS 156 provides
–> a Fair Value Option for SA and SL
–> a Fair Value Option for SA and SL
Entities have a choice of (A) or (B):
–> (A) Amortized cost
–> (B) Fair value
–> (A) Amortized cost
–> (B) Fair value
3. Separate presentation of SA and SL
–> subsequently measured at fair value
–> subsequently measured at fair value