FASB unlikely to delay FIN 46, says CSFB

The US Financial Accounting Standards Board (FASB) is unlikely to delay the introduction of financial interpretation number 46 (FIN 46), the consolidation of variable interest entities (VIEs), according to the accounting and tax research team at Credit Suisse First Boston (CSFB) in New York.

The "complex” and “vague” rule could affect close to $400 billion of off-balance-sheet assets related to S&P 500 companies and “could affect almost every line in the[ir] financial statements”, according to CSFB. These include credit ratings, loan covenants and regulatory capital. CSFB believes estimating the impact of FIN 46, which affects off-balance-sheet vehicles related to collateralised debt obligation and asset-backed commercial paper conduits, among others, is “virtually impossible”