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Qualified Special Purpose Entities (QSPE)7/8/09 - FASB has decided to eliminate the concept of qualified special purpose entities, commonly known as "Q's." FASB has been troubled by the existence of Q's for some time, and last year proposed eliminating the accounting device, which allows banks and other financial companies to hold many asset-based securities off-balance sheet. FASB's move may not have a dramatic impact on income statements across the entire banking sector, but it will dent Tier 1 capital levels at institutions that sold mortgage and other loans into such securities. These assets will now show up on the balance sheet at the start of the upcoming fiscal year — Jan. 1, 2010. |
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