Exposure Drafts, Comment Letters, and Statements of Position
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Description
The AICPA's Banking Committee, Savings and Loan Associations Committee, and Stockbrokerage and Investment Banking Committee conclude the following: For debt instruments, including mortgage-backed securities, to be substantially the same, all the following criteria must be met: A. The debt instruments must have the same primary obligor, except for debt instruments guaranteed by a sovereign goverment, central bank, or agency, thereof, in which case the guarantor must be the same. B. The debt instruments must be identical in form and type. C. The debt instruments must bear the identical contractual interest rate. D. The debt instruments must have the same maturity except in the case of mortgage-backed pass-through securities for which the mortgages collateralizing the securities must be similar with respect to maturities (that is, expected remaining lives) resulting in approximately the same market yield. E. In the case of mortgage-backed pass-through securities, the securities must be collateralized by a similar pool of mortgages, such as single-family residential mortgages. F. The debt instruments must have the same aggregate unpaid principal amounts, except in the case of mortgage-backed pass-through securities, the aggregate principal amounts of the mortgage-backed securities given up and the mortgage-backed securiities reacquired must be within the accepted "good delivery" standard for the type of mortgage-backed security involved.
Publication Date
1988
Relational Format
Book
Keywords
Accounting -- Terminology; Bank examination -- Standards -- United States
Disciplines
Accounting | Taxation
Recommended Citation
American Institute of Certified Public Accountants. Accounting Standards Division, American Institute of Certified Public Accountants. Committee on Banking, American Institute of Certified Public Accountants. Savings and Loan Associations Committee, and American Institute of Certified Public Accountants. Stockbrokerage and Investment Banking Committee, "Proposed statement of position : definition of substantially the same for holders of debt instruments;Definition substantially the same for holders of debt instruments; Exposure draft (American Institute of Certified Public Accountants), 1988, Apr. 29" (1988). Exposure Drafts, Comment Letters, and Statements of Position. 514.
https://egrove.olemiss.edu/aicpa_sop/514
Comments
Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.