Please ensure Javascript is enabled for purposes of website accessibility
February 5, 2023

FASB Finally Gets Around to Preventing Lehman Bros Version 2.0

The Financial Accounting Standards Board has finalized its new accounting rule around repurchase agreements to assure similar transactions receive similar accounting treatment going forward.

FASB issued Accounting Standards Update No. 2014-11 to revise the rules around repurchase-to-maturity transactions, along with repurchase financings and related disclosures. The guidance changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements to align the accounting for other repurchase agreements, which are treated as secured borrowings. The new rule is meant to eliminate the opportunity to treat such transactions as the true sale of an asset, which would enable an entity to remove it from its balance sheet, thus reducing apparent leverage. [Compliance Week]

Latest Accounting Jobs--Apply Now:

There are currently no vacancies.

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Comments are closed.

Related articles

cute dog with Valentine hearts

Friday Footnotes: Know Your Value; Retired EY Partners Complain; ‘Rest For Success’ | 2.3.23

Hail Eris! Today is 2/3/23 and this is your Friday roundup of all the week’s news that wasn’t fit to print (or make fun of). We appreciate you stopping by! Big 4 EY considers handing retired US partners cut of proceeds from spin-off [Financial Times] EY has told retired US partners it is considering giving […]

a kid in business attire working on a laptop

If You Let 23-Year-Olds Sign Off on Audits, You’re Gonna Have a Bad Time

On January 24, short seller Hindenburg Research dropped a report called Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History, in which Hindenburg accuses Indian conglomerate Adani Group of engaging in “a brazen stock manipulation and accounting fraud scheme over the course of decades,” among other things. A […]