Select one (1) Statement of Financial Accounting Standards (1 - 159)
Which is : Statement No. 65 - Accounting for Certain Mortgage Banking Activities
Answer the following:
1. Introduction and recap of FASB statement.
2. Original interpretation of information and usefulness to the accounting profession.
3. Original ideas in the APPLICATION of this statement in practice.
4. Additional research on the topic.
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Below are my answers.
Statement of Financial Accounting Standards No. 65, Accounting for Certain Mortgage Banking Activities
Introduction and Recap
SFAS No. 65, Accounting for Certain Mortgage Banking Activities, is the conglomeration of several specialized accounting and reporting principles and practices in AICPA's (or American Institute of Certified Public Accountants) Statements of Position No. 74-12, Accounting Practices in the Mortgage Banking Industry, and No. 76-2, Accounting for Origination Costs and Loan and Commitment Fees in the Mortgage Banking Industry (Financial Accounting Standards Board, 2010). The accounting standard the statement recommended is that mortgage loans and mortgage-backed securities held for sale be reported at cost or market value whichever is lower at reporting date. On the other hand, origination costs related to loan applications are recorded as costs in the period when the loans were applied. However, if the origination costs that represent reimbursement of loan origination costs should be recognized as ...
Statements of financial accounting standards are examined.