FASB ASC 860 Transfers and Servicing


The Financial Accounting Standards Board (FASB) released Accounting Standards Codification 860 (ASC 860) to address transfers and servicing of financial assets.  When we say financial assets, this generally means the right to receive cash or another financial instrument in some fashion.  Here is a list of some types of transactions:

c.Transfers of receivables with recourse
d.Securities lending transactions
e.Repurchase Agreements
f.Loan participations
g.Banker’s acceptances

The general objective of this standard is for each party in the transaction to recognize only the liabilities incurred or assets it controls, as well as to derecognize assets when control has been surrendered, and derecognize liabilities when extinguished.  As each of these types of transactions has its own unique rules, the codification should be referenced for each.

Check out more high level explanations of the FASB ASC in our Guide to the Accounting Standards Codification!

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