AICPA STATEMENT OF POSITION 03-3 PDF

Space considerations prevent publishing here the appendices to SOP Statements of Position on accounting issues present the conclusions of at least as amended, identifies AICPA Statements of Position that have been cleared by. The AICPA accounting standards executive committee (AcSEC) issues Statement of Position (SOP) , Accounting for Certain Loans or Debt Securities. AICPA Statements of Position (SOPs), available full-text at the links below from the University of .. , Accounting for certain loans or debt securities acquired in a transfer full-text, December , Reporting financial highlights and .

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Because Fannie Mae determines its reserve for guaranty losses by aggregating homogeneous loans into pools rather than on an individual loan basis, Fannie Mae has assumed, for purposes of simplifying the example, that there is no initial reserve for guaranty losses recorded for the delinquent loan prior to the purchase from the MBS trust.

Due to the materiality of loans accounted for under SOPwe believe you should present the information presented on page F in your K in interim reports as well. Auditing insurance entities’ loss reserves, May 29, ; supplement to AICPA Audit and accounting guide, Audits of property and liability insurance companies full-text.

AICPA Statements of Position

In applying SOPthe Company independently reviews all adversely classified loans those risk-rated substandard or doubtfulnonaccrual loans and loans classified as impaired by the possition company and independently concludes whether it is probable that the Company will be unable to collect all contractually required payments receivable for each of these loans. Performing agreed-upon procedures engagements that address annual claims prompt payment reports as required by the New Jersey Administrative Code posution.

The change has the effect of increasing the ratios slightly compared with the presentation included in the Third Quarter Form Q. Grants of Plan Based Awards, page Audits of property and liability insurance companies full-text. You state here that loans acquired under your default call option are considered individually impaired at acquisition.

Recognition of profit on sales of receivables with recourse full-text. We note that in the Q1-Q3 Q Investor Summary you disclose that fair value is based upon an assessment of what a third party would pay for such seriously delinquent loans, given current market conditions.

AICPA Statements of Position – Wikipedia

Auditors’ reports under U. Please stafement to clearly state, if true, that all acquired loans are on nonaccrual status at acquisition. Cedars was a privately-owned bank and both Foothill and Community were public companies.

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Single-Family Credit Guaranty, page 6. Fannie Mae does not calculate fair value using the lower of the market estimate and internal estimates of loss. Fannie Mae is not able to provide the Staff with draft disclosure relating to compensation at this time because incentive compensation decisions for are only now being finalized.

Consolidated Statements of Cash Flow, page F Accounting by agricultural producers and agricultural cooperatives full-text.

Fannie Mae believes that this additional disclosure in the consolidated statements of cash flows will provide statemnt transparency as to the movement of loans. You also disclose that you are required by your MBS trust agreement to purchase loans from an MBS trust when specified predetermined triggers are met.

Although Fannie Mae uses market estimates to determine the fair value of a loan at acquisition, Fannie Mae does not use estimates of fair value, whether internal or external, to determine whether a loan should be placed on or returned to accrual status. Software revenue recognition full-text. Settlements of the advances to lenders, other than through repurchase, are not collected in cash, but rather in the receipt of either loans or MBS.

Guidance to practitioners in conducting and reporting on an agreed-upon procedures engagement to assist management in evaluating the effectiveness of its corporate compliance program full-text. With regard fo the Foothill loans, we concluded from losition review that there were no Foothill loans subject to SOP Consolidated Balance Sheet, page F Financial reporting by entities in reorganization under the bankruptcy code full-text.

Response to Comment 1. Application of the requirements of accounting research bulletins, opinions of the Accounting Principles Board, and statements and interpretations of the Financial Accounting Standards Board to not-for-profit organizations full-text. Explain the extent to which you use market versus internal estimates for these purposes. Please revise to disclose the expected effects on your current and future financial results if you purchase a loan as compared to if you do not purchase the loan.

Otherwise, tell us how you determined this was not appropriate. Disclosure in annual stockholder reports; comments on Securities Exchange Act release no. Fannie Mae refers to this option as its default call option. Although this data represents an important business metric, it does not support the conclusion that these loans should be excluded from the scope of SOP Fannie Mae classifies a multifamily mortgage loan as a Seriously Delinquent Loan if the loan is 60 days or more past due.

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This page was last edited on 29 Julyat Since Fannie Mae did not change its accounting policy for loans modified in a troubled debt restructuring duringit plans to include the same disclosure in its Form K. In future filings, clearly revise to describe how the nonaccrual status affects the accretion recorded under SOP Specifically aicpaa us how each of the following factors impact your determination: Please also see the further discussion of this issue in the response to statemnet Accounting by producers or distributors of films full-text.

Fannie Mae will make this change beginning with its Form K, will conform prior period presentations to reflect this change, and will disclose the ratios calculated under its prior methodology in footnote 2 to the table.

Fannie Mae initially determines which loans it plans to securitize based on the loan product type. Auditing the statement of social insurance full-text. Contingencies arising from energy shortages full-text.

Amendment to scope of Statement of positionFinancial reporting by nonpublic investment partnerships, to include commodity pools full-text. First, a portion of the amounts recorded under SOP can be recovered elsewhere in the financial statements over time, even though the dollar amount of the SOP fair value losses will not adjust when that portion of the SOP loss is recovered.

Accounting by cable television companies psition. If a loan that is purchased from a trust is not a Seriously Delinquent Loan, Fannie Mae considers relevant facts and circumstances to determine whether it is probable, at acquisition, that Fannie Mae will be unable to collect all amounts due according to the contractual terms of the loan.

Fannie Mae complies with this statement by adjusting both contractual cash flows and cash flows expected to be collected to take into account the estimated stateemnt and amount of prepayments. It is probable at acquisition that Fannie Mae will be unable to collect all required payments receivable in accordance with their contractual terms ignoring insignificant delays in payment 2.

Environmental remediation liabilities, including auditing guidance full-text.