Financial reporting considerations for securitisation SPVs

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Financial reporting considerations for securitisation SPVs

Financial reporting considerations for securitisation SPVs

Jul 13 2021

From 1 July 2021, AASB 2020-2 Removal of Special Purpose Financial Statements for Certain For-Profit Private Sector will apply, removing the ability of many entities, including some securitisation SPVs, to prepare special purpose financial statements.

The ASF published a guidance note on this in October 2020 which provides suggested language for SPVs clarifying the application of Australian Accounting Standards in the SPV’s financial statements including specifying which disclosure standards are being complied with.

The ASF recommends speaking to an auditor about upcoming financial reporting requirements and involving  both treasury and finance team members in the discussions.

Whilst the change in the reporting framework will primarily impact new securitisation vehicles, any changes to existing structures, including amendments to tenor, pricing or other conditions may also override any grandfathering considerations and as such, care should be taken before entering into such amendments where the underlying transaction documents reference language which may suggest compliance with all accounting standards.