%0 Journal Article %A Lisa Filomia-Aktas %T Off-Balance-Sheet Transactions: The Changing Landscape %D 2009 %R 10.3905/JSF.2009.15.3.022 %J The Journal of Structured Finance %P 22-25 %V 15 %N 3 %X The balance sheets of lenders, sponsors, servicers, managers, and investors in structured finance transactions are likely to change as a result of the accounting amendments recently issued by the Financial Accounting Standards Board (FASB). FASB Statement 167 (FAS 167) will affect who consolidates entities known as Variable Interest Entities (VIEs). VIEs are entities in which the equity holders may not be the controlling parties; therefore, a consolidation model is provided to identify the controlling party. The new guidance in FAS 167 redefines the entities that must be evaluated under this model, the consolidation model itself, when the assessment must be performed, and the related financial statement presentation and disclosures. It also increases the degree of judgment that will be required in the process. FAS 166 and FAS 167 also bring the United States closer to convergence with International Financial Reporting Standards (IFRS), which many believe will become the single set of high-quality accounting standards used globally. The elimination of the Qualifying Special-Purpose Entity (QSPE) and the move to a qualitative consolidation model based on control (with regard to both power and benefits) is closely aligned with the requirements of IFRS. And further amendments are possible as the FASB and IASB move forward with the current consolidation project.TOPICS: Other real assets, credit default swaps %U https://jsf.pm-research.com/content/iijstrfin/15/3/22.full.pdf