The FASB approved a recommendation from its research staff that loan originators and servicers with stakes in special purpose entities disclose their maximum exposures to potential losses in the off-balance-sheet vehicles.

With the decision, which was reached by the Board during a November 24, 2008, meeting, the FASB is ready to proceed with publication of the final version of the Proposed FASB Staff Position (FSP) No. FAS 140-e and (FIN) 46(R)-e, Disclosures about Transfers of Financial Assets and Interests in Variable Interest Entities.

The FASB also reiterated the approval of its earlier decisions that final FSP No. FAS 140-4 and FIN 46(R)-8 will be effective for the first interim and annual reporting periods that begin after it is issued.