In a continuing struggle to keep up with the increasing complexity of financial assets and special purpose entities, the Financial Accounting Standards Board has issued three proposals to amend existing statements that have, in just a few years, become - to some extent - obsolete.The proposals are a response to constituents in various sectors who requested clarifications and simplifications of the technically complex Statement 140, Accounting for Transfers and Servicing of Financial Assets, which was seen as becoming harder to interpret and implement as new kinds of financial assets come into existence, especially in the areas of securitizations and special purpose entities.

"The board is trying to simplify the application of 140," explained FASB project manager Pat Donoghue. "They're trying to make sure they have addressed financial products that may not have been addressed when 140 was issued. The ultimate goal of all three of these standards is to provide clear and consistent guidance that everyone will read the same way."

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