Audit considerations under SFAS 125

SFAS 125, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, is effective for applicable transactions after December 31, 1996, although certain provisions may be deferred by one year. It stipulates the appropriate accounting treatments for transfers of a v...

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Bibliographic Details
Published in:The Ohio CPA journal 1997-07, Vol.56 (3), p.21
Main Authors: Moores, Tommy, Cocco, Anthony F
Format: Article
Language:English
Subjects:
Accounting
Accounting and auditing
Asset liability management
Assets (Accounting)
Auditing procedures
Auditors
Audits
Balance sheets
Bankruptcy
Borrowing
Collateral
Compensation
Debt
FASB statements
Financial accounting standards
Financial statements
Liabilities (Accounting)
Liability
SFAS 125
Transfer (Law)
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Summary:SFAS 125, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, is effective for applicable transactions after December 31, 1996, although certain provisions may be deferred by one year. It stipulates the appropriate accounting treatments for transfers of a variety of financial assets, articulates the accounting for servicing assets and liabilities, and tightens the requirements for removing liabilities from recognition on the balance sheet. The audit considerations arising from SFAS 125 are discussed. As might be expected, an accounting standard of this breadth contains opportunities for financial statement manipulation.
ISSN:0749-8284