Since the time of the first asset securitization transactions, the determination of whether the transfer of assets in a securitization should be accounted for as a sale or a secured borrowing has been challenging. FASB Statement No. 77, “Reporting by Transfer or for Transfers of Receivables with Recourse”, issued in 1983, and FASB Technical Bulletin No. 85-2, “Accounting for Collateralized Mortgage Obligations”, issued in 1985, led to confusion and inconsistency in accounting practices for financial asset transfers. FASB Technical Bulletin [...]