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Paragraph Action Accounting Standards Update Date
Affiliate Removed from Subtopic Accounting Standards Update No. 2009-16 12/23/2009
Agent Removed from Subtopic Accounting Standards Update No. 2009-16 12/23/2009
Beneficial Interests Removed from Subtopic Accounting Standards Update No. 2009-16 12/23/2009
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Consolidated Affiliate Superseded Accounting Standards Update No. 2009-16 12/23/2009
Consolidated Affiliate of the Transferor Amended Accounting Standards Update No. 2009-16 12/23/2009
Derivative Financial Instrument Removed from Subtopic Accounting Standards Update No. 2009-16 12/23/2009
Embedded Call Option Removed from Subtopic Accounting Standards Update No. 2009-16 12/23/2009
Financial Asset Removed from Subtopic Accounting Standards Update No. 2009-16 12/23/2009
Guaranteed Mortgage Securitization Superseded Accounting Standards Update No. 2009-16 12/23/2009
Qualifying Special-Purpose Entity Superseded Accounting Standards Update No. 2009-16 12/23/2009
Securitization Removed from Subtopic Accounting Standards Update No. 2009-16 12/23/2009
Transfer Removed from Subtopic Accounting Standards Update No. 2009-16 12/23/2009
Transferee Removed from Subtopic Accounting Standards Update No. 2009-16 12/23/2009
Transferor Removed from Subtopic Accounting Standards Update No. 2009-16 12/23/2009
Unilateral Ability Removed from Subtopic Accounting Standards Update No. 2009-16 12/23/2009
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860-40-15-1 through 15-29 Superseded Accounting Standards Update No. 2009-16 12/23/2009
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860-40-45-1 through 45-4 Superseded Accounting Standards Update No. 2009-16 12/23/2009
860-40-55-1 through 55-29 Superseded Accounting Standards Update No. 2009-16 12/23/2009
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Every substantive paragraph in the subtopic (Sections 05, 10, 15, 25, 40, 45 and 55) was superseded by ASU 2009-16 (formerly FAS 166), which eliminated the QSPE concept entirely. The subtopic is now an empty shell retained only for reference; transfers to securitization entities are analyzed under the general derecognition conditions of ASC 860-10 and the consolidation guidance in ASC 810.","key_points":["All guidance in this subtopic (860-40-05-1 through 05-6, 10-1, 15-1 through 15-29, 25-1 through 25-3, 40-1 through 40-11, 45-1 through 45-4, and 55-1 through 55-29) was superseded by Accounting Standards Update No. 2009-16.","ASU 2009-16 removed the concept of a qualifying special-purpose entity, so an entity can no longer rely on QSPE status to avoid consolidation or to achieve sale accounting.","Because the QSPE scope-exception was eliminated, transfers to securitization vehicles must satisfy the general surrender-of-control conditions in ASC 860-10-40 (including legal isolation, the transferee's ability to pledge or exchange, and no effective control by the transferor).","Whether the transferee securitization entity must be consolidated is now determined under ASC 810-10, including the variable interest entity model as amended by ASU 2009-17.","No recognition, measurement, derecognition, presentation, or disclosure requirements remain in ASC 860-40; the subtopic number is retained solely to preserve the Codification's structure."],"categories":["Derecognition","Financial instruments","Consolidation","Transition and effective dates"],"audience_level":"intermediate","student_note":"Exam-relevant point: the QSPE is dead GAAP — post-2009 you never get automatic off-balance-sheet treatment for a securitization vehicle. The common mistake is citing old FAS 140/QSPE rules (or this subtopic) as live authority instead of applying ASC 860-10's control-based derecognition test together with ASC 810-10's VIE consolidation analysis.","related_topics":["860-10","860-20","860-50","810-10","825-10"],"key_concepts":["qualifying special-purpose entity","superseded guidance","transfers of financial assets","sale accounting","securitization","surrender of control","variable interest entity","consolidation scope exception"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e14bc0233c735dae2435abfac9db5b10b5d726f88b16531e1c04aa7260750607","downloaded_from":"2026-09-10T02:07:38.248Z","last_downloaded_at":"2026-09-10T02:08:00.369Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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