FASB - Proposed accounting guidance for repos 

January 21: The FASB recently proposed new guidance that would change the accounting for repurchase-to-maturity agreements (repos-to-maturity).

Under current guidance, repos-to-maturity may meet the criteria to be accounted for as sales; however, the FASB “exposure draft” would require them to be accounted for as secured borrowings.


The exposure draft would:


  • Provide additional guidance to evaluate whether financial assets that will be repurchased are substantially the same as those transferred
  • Change the accounting for a transfer of a financial asset and contemporaneous repurchase agreement financing between the same counterparties
  • Require additional disclosures for repurchase agreements

Comments are due March 29, 2013.


This exposure draft comprises proposals from the second FASB project on accounting for repos resulting from the financial crisis. Concerns were raised about repos-to-maturity involving European sovereign debt securities that were being accounted for as sales, even though the transferor retained the underlying credit risk of the transferred securities.


Read a January 2013 report [PDF 99 KB] prepared by KPMG LLP: Defining Issues: FASB Proposes New Accounting Guidance for Repos





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