# ASC 860-40: Transfers and Servicing — Transfers to Qualifying Special Purpose Entities Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/860/40/) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T02:07:38.248Z to 2026-09-10T02:08:00.369Z Record version: sha256:81efbbb3a83475c1252526213dea5700c8bf621a91a7f3e9fb0abca380c1f07f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-40: Transfers and Servicing — Transfers to Qualifying Special Purpose Entities ### Machine-generated study aids ```json { "summary": "ASC 860-40 formerly governed transfers of financial assets to qualifying special-purpose entities (QSPEs), which under pre-2010 GAAP were exempt from consolidation and could support sale accounting for the transferor. Every substantive paragraph in the subtopic (Sections 05, 10, 15, 25, 40, 45 and 55) was superseded by ASU 2009-16 (formerly FAS 166), which eliminated the QSPE concept entirely.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05-6, 10-1, 15-1 through 15-29, 25-1 through 25-3, 40-1 through 40-11, 45-1 through 45-4, and 55-1 through 55-29) was superseded by Accounting Standards Update No. 2009-16.", "ASU 2009-16 removed the concept of a qualifying special-purpose entity, so an entity can no longer rely on QSPE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" ] } ``` Source downloaded (UTC): 2026-09-10T02:07:38.248Z to 2026-09-10T02:07:38.248Z Record version: sha256:3cf5330f486de03b54b1994d315d2efe1ebc54f2015cfea392bd29b1a1ff1ec8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-40-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/860/40/#00-status) SEC content: no ##### [860-40-00-1](https://asc.understandingaccounting.org/asc/860/40/#860-40-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:07:38.248Z to 2026-09-10T02:07:38.248Z Record version: sha256:2c15fa23eb47a4ff4c7f9fd19f91add3ab7b6e3a6b3a27ebb012a63c3b6bee28 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
AffiliateRemoved from SubtopicAccounting Standards Update No. 2009-1612/23/2009
AgentRemoved from SubtopicAccounting Standards Update No. 2009-1612/23/2009
Beneficial InterestsRemoved from SubtopicAccounting Standards Update No. 2009-1612/23/2009
ComminglingSupersededAccounting Standards Update No. 2009-1612/23/2009
Condominium StructureSupersededAccounting Standards Update No. 2009-1612/23/2009
Consolidated AffiliateSupersededAccounting Standards Update No. 2009-1612/23/2009
Consolidated Affiliate of the TransferorAmendedAccounting Standards Update No. 2009-1612/23/2009
Derivative Financial InstrumentRemoved from SubtopicAccounting Standards Update No. 2009-1612/23/2009
Embedded Call OptionRemoved from SubtopicAccounting Standards Update No. 2009-1612/23/2009
Financial AssetRemoved from SubtopicAccounting Standards Update No. 2009-1612/23/2009
Guaranteed Mortgage SecuritizationSupersededAccounting Standards Update No. 2009-1612/23/2009
Qualifying Special-Purpose EntitySupersededAccounting Standards Update No. 2009-1612/23/2009
SecuritizationRemoved from SubtopicAccounting Standards Update No. 2009-1612/23/2009
TransferRemoved from SubtopicAccounting Standards Update No. 2009-1612/23/2009
TransfereeRemoved from SubtopicAccounting Standards Update No. 2009-1612/23/2009
TransferorRemoved from SubtopicAccounting Standards Update No. 2009-1612/23/2009
Unilateral AbilityRemoved from SubtopicAccounting Standards Update No. 2009-1612/23/2009
860-40-05-1 through 05-4SupersededAccounting Standards Update No. 2009-1612/23/2009
860-40-05-6SupersededAccounting Standards Update No. 2009-1612/23/2009
860-40-10-1SupersededAccounting Standards Update No. 2009-1612/23/2009
860-40-15-1 through 15-29SupersededAccounting Standards Update No. 2009-1612/23/2009
860-40-25-1 through 25-3SupersededAccounting Standards Update No. 2009-1612/23/2009
860-40-40-1 through 40-11SupersededAccounting Standards Update No. 2009-1612/23/2009
860-40-45-1 through 45-4SupersededAccounting Standards Update No. 2009-1612/23/2009
860-40-55-1 through 55-29SupersededAccounting Standards Update No. 2009-1612/23/2009
Source downloaded (UTC): 2026-09-10T02:07:41.559Z to 2026-09-10T02:07:41.559Z Record version: sha256:f869efa92802532f03b88695d07e3d9e9b7750adc38d445221ce0ca0cbb7bb06 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-40-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/860/40/#05-overview-and-background) SEC content: no ##### [860-40-05-1](https://asc.understandingaccounting.org/asc/860/40/#860-40-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:07:41.559Z to 2026-09-10T02:07:41.559Z Record version: sha256:86b5f857e10c211decb53cfe4eb3fe9430aead808f1f86826ff05bed0e1e97dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 860-40-05-1 through 05-4 superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/asc/860/40/#860-40-05-1). ##### [860-40-05-5](https://asc.understandingaccounting.org/asc/860/40/#860-40-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:07:41.559Z to 2026-09-10T02:07:41.559Z Record version: sha256:145d7986699219dea3bb3cec03179b52424d00b6da5e7b08105a8453a2192086 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [860-40-05-6](https://asc.understandingaccounting.org/asc/860/40/#860-40-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:07:41.559Z to 2026-09-10T02:07:41.559Z Record version: sha256:6e0a6e18113f6a7d9b117ac61bc190590d8fa2c3e2259eabecf78ce01d86617d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). ##### [860-40-05-7](https://asc.understandingaccounting.org/asc/860/40/#860-40-05-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:07:41.559Z to 2026-09-10T02:07:41.559Z Record version: sha256:6718a17ef0cce1eeb7322668653f003d280e7b1c72af8591d41fd752c629adc4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). Source downloaded (UTC): 2026-09-10T02:07:43.543Z to 2026-09-10T02:07:43.543Z Record version: sha256:7133ec43c7e1f1cd703cf7f3c766815d8ec3cb7c0d556c593863f98f97b5ad8b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-40-10: 10 Objectives [Read section](https://asc.understandingaccounting.org/asc/860/40/#10-objectives) SEC content: no ##### [860-40-10-1](https://asc.understandingaccounting.org/asc/860/40/#860-40-10-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:07:43.543Z to 2026-09-10T02:07:43.543Z Record version: sha256:cff0c8e70646b7bcbd7c56332a5a6ee59910078d6c45cc32776875eb40416b53 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). Source downloaded (UTC): 2026-09-10T02:07:46.934Z to 2026-09-10T02:07:46.934Z Record version: sha256:d4c5ce055a55ca3401d7d539201722ff853b16de07912ceb078e4dcf024b4b31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-40-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/860/40/#15-scope-and-scope-exceptions) SEC content: no ##### [860-40-15-1](https://asc.understandingaccounting.org/asc/860/40/#860-40-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:07:46.934Z to 2026-09-10T02:07:46.934Z Record version: sha256:2e4c2ae000cc08da37ce52f94e1388c60841f011de3f75ae5da84ef5c16c743d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 860-40-15-1 through 15-29 superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/asc/860/40/#860-40-15-1). Source downloaded (UTC): 2026-09-10T02:07:52.052Z to 2026-09-10T02:07:52.052Z Record version: sha256:99bb292a833b3bcd24ba7625140d0d6ab79245226895b64a2640d6e67830e945 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-40-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/860/40/#25-recognition) SEC content: no ##### [860-40-25-1](https://asc.understandingaccounting.org/asc/860/40/#860-40-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:07:52.052Z to 2026-09-10T02:07:52.052Z Record version: sha256:90d534d008fd39908b1d9a1aa5e042274b5a2ea9a31102568f8466acfbec18bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 860-40-25-1 through 25-3 superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/asc/860/40/#860-40-25-1). Source downloaded (UTC): 2026-09-10T02:07:55.187Z to 2026-09-10T02:07:55.187Z Record version: sha256:4229ba4f93f7d24efe1655b6b5a24dfa87571609d9f9bea9855fd3f7bd16d65f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-40-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/860/40/#40-derecognition) SEC content: no ##### [860-40-40-1](https://asc.understandingaccounting.org/asc/860/40/#860-40-40-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:07:55.187Z to 2026-09-10T02:07:55.187Z Record version: sha256:c1f2cf46497c5063cfb8cbd87d168c01884f3d4c5a1d2528db5d0fb83b089f97 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 860-40-40-1 through 40-11 superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/asc/860/40/#860-40-40-1). Source downloaded (UTC): 2026-09-10T02:07:56.839Z to 2026-09-10T02:07:56.839Z Record version: sha256:6762abd11f97155fd222d113296a9a8c35457fa87712e1a797a92ae81973cfa1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-40-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/860/40/#45-other-presentation-matters) SEC content: no ##### [860-40-45-1](https://asc.understandingaccounting.org/asc/860/40/#860-40-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:07:56.839Z to 2026-09-10T02:07:56.839Z Record version: sha256:20bfba284c41f703d0e0e6a99af5bdf51ad84a107cfa21f5004bc3ee167a1fdf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 860-40-45-1 through 45-4 superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/asc/860/40/#860-40-45-1). Source downloaded (UTC): 2026-09-10T02:08:00.369Z to 2026-09-10T02:08:00.369Z Record version: sha256:3f7a82734098948175c18bde6477f9b9943ed1b8bb7d3dd7c57efcff12bfd62f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-40-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/860/40/#55-implementation-guidance-and-illustrations) SEC content: no ##### [860-40-55-1](https://asc.understandingaccounting.org/asc/860/40/#860-40-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:00.369Z to 2026-09-10T02:08:00.369Z Record version: sha256:2d1ad6e550e9e961a584a6f63e2299c8505fd5803168f0ffb0e87a7300b6dcfe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 860-40-55-1 through 55-29 superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/asc/860/40/#860-40-55-1).