In this episode, we focus on transfers of financial assets. The discussion breaks down the fundamentals of ASC 860, clarifies when a transfer qualifies as a sale versus a secured borrowing, and outlines the key criteria for derecognition.

In this episode, we discuss:

• 0:59 – Overview of ASC 860 and the basics of financial asset transfers
• 3:35 – Transactions subject to ASC 860
• 6:56 – Transfer of an entire versus a portion of a financial asset and application of the participating interest guidance
• 11:12 – Control criteria to achieve sale accounting:
  • 11:53 – Legal isolation
  • 16:38 – Right to pledge or exchange
  • 19:42 – Effective control
• 21:50 – Examples of "failed sale" transactions

For more information, check out our Transfers and servicing of financial assets guide.

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About our guest

Chip Currie is a partner in PwC’s National Office with 30 years of experience assisting companies in resolving complex business and accounting issues. He concentrates on the accounting for financial instruments under both current and emerging standards and works with many of the firm's largest financial services clients and a number of non-financial services clients on treasury-related matters. 

About our guest host 

Guest host Diana Stoltzfus is a partner in the National Office who helps to shape PwC’s perspectives on regulatory matters, responses to rulemakings and policy development, and implementation related to significant new rules and regulations. Prior to rejoining PwC, Diana was the Deputy Chief Accountant in the Office of the Chief Accountant (OCA) at the SEC where she led the activities of the OCA’s Professional Practices Group. 

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected]

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