# ASC 325-40-05: Investments—Other — Beneficial Interests in Securitized Financial Assets — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

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## ASC 325-40-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/325/40/#05-overview-and-background)

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##### [325-40-05-1](https://asc.understandingaccounting.org/asc/325/40/#325-40-05-1)

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This Subtopic addresses accounting for a transferor's interests in securitized transactions accounted for as sales (see Topic 860) and purchased [beneficial interests](https://asc.understandingaccounting.org/glossary/b/#beneficial-interests "Rights to receive all or portions of specified cash inflows received by a trust or other entity, including, but not limited to, all of the following: Senior and subordinated shares of interest, principal, or other cash inflows to be passed-through or paid-through Premiums due to guarantors Commercial paper obligations Residual interests, whether in the form of debt or equity."). Collectively, these interests are referred to in this Subtopic as beneficial interests.

##### [325-40-05-2](https://asc.understandingaccounting.org/asc/325/40/#325-40-05-2)

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Changes in cash flows expected to be collected might arise from prepayments, from credit concerns, from changes in interest rates, or for other reasons.

##### [325-40-05-3](https://asc.understandingaccounting.org/asc/325/40/#325-40-05-3)

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