FASB No. 115

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FASB No. 115

A rule of the Financial Accounting Standards Board requiring insurance companies to report their securities with fixed maturities according to their current market value. This rule applies to most negotiable and nonnegotiable bonds.
References in periodicals archive ?
With the advent of FASB 115, it became increasingly common for companies to pursue buy and hold-to-maturity strategies in order to avoid the impact on profit-and-loss statements often associated with active trading.
When management expresses its intent to sell, and sale is no longer restricted, FASB 115 asks that the value of shares be reclassified to securities held for resale.
Each time an entity undertakes an obligation to service financial assets it should recognize either a servicing asset or a serving liability for that servicing contract, unless it secures the assets, retains all of the resulting securities, and classifies them as debt securities held-to-maturity in accordance with FASB 115, Accounting for Certain Investments in Debt and Equity Securities.
As with all trading activity, market-driven portfolio adjustments may result in increased transaction charges and jeopardize a FASB 115 "buy and hold" classification.