Accounting Guidance Issued to Prevent AIR Padding in Credit Card Securitization
December 6, 2002
Federal thrift and banking regulators have issued guidance to clarify accounting procedures for a seller’s subordinated right to cash flows in a credit card securitization. The accounting guidance pertains to how thrifts and banks that securitize credit card receivables record an asset commonly referred to as “accrued interest receivable,” or AIR.