Wiley GAAP 2020

63ASC 860 TRANSFERS AND SERVICING

• Perspective and Issues
  • Subtopics
  • Scope and Scope Exceptions
  • Overview
• Definitions of Terms
• Concepts, Rules, and Examples
  • ASC 860-10, Overall
    • Conditions for a Sale of a Financial Asset
    • Exchange of One Form of Beneficial Interest for Another
    • Isolation of Transferred Financial Interests
    • Isolation of Transferred Assets
    • Transference of Rights to Pledge or Exchange Transferred Financial Assets
    • Meaning of “Participating Interest”
  • Transferor’s Right to Pledge or Exchange Transferred Financial Assets
    • Example of Accounting for the Transfer of Receivables with Recourse
  • ASC 860-20, Sales of Financial Assets
    • Measuring Assets and Liabilities after Completion of a Transfer
    • Sale of a Participating Interest
    • Sale of an Entire Financial Asset or Group of Entire Financial Assets
    • Accrued Interest Receivable
  • ASC 860-30, Secured Borrowing and Collateral
  • ASC 860-50, Servicing Assets and Liabilities
    • Interests Retained by the Transferor
    • Example—Sale of Partial Interest in Receivables
    • Example—Sale of Loans with Various Types of Retained Interests
    • The Nature of Servicing
    • Accounting for Servicing
    • Example—Sale of Receivables with Servicing Asset Retained by Transferor
    • Example—Sale of Receivables with Servicing Liability Retained by Transferor
    • Amortization Method—Measurement of Impairment or Increased Obligations
    • Example—Sale of Receivables with Servicing Asset Retained
    • Servicing versus Interest-Only Strip
    • Example of Rights to Future Income from Serviced Assets ...