Final Rule Analysis: Amendments to the Impairment Guidance of EITF Issue No. 99-20

CUNA
February 2, 2009 | COMMENTS

This FASB Staff Position (FSP), Issue 99-20-1, amends the impairment guidance in Emerging Issues Task Force Issue No. 99-20, Recognition of Interest Income and Impairment on Purchased Beneficial Interests and Beneficial Interests That Continue to Be Held by a Transferor in Securitized Financial Assets.

Impairment model Issue 99-20 applies to certain low credit quality securitized transactions.

This FSP more closely aligns impairment model Issue 99-20 with Statement of Financial Accounting Standards (SFAS) No. 115 by shifting the determination of other-than-temporary impairment from a market participant's assessment of cash flows to management's assessment.

Once classified as other-than-temporarily impaired, these debt securities must still be written down to fair market value.

This FSP is effective for interim and annual reporting periods ending after December 15, 2008, and is to be applied prospectively.

If you have questions regarding this staff position, please feel free to contact Senior Vice President and Deputy General Counsel Mary Dunn by e-mail at mdunn@cuna.com or by telephone at (800) 356-9655, extension 6736, or contact Regulatory Research Counsel Luke Martone by e-mail at lmartone@cuna.com or by telephone at extension 6743. You may access the staff position online here.

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