Question A

1. Identify the key components of the structure of the U.S. accounting authority, the FASB, and the accounting framework, GAAP. Do its rulings and disclosure requirements have the effect of law? What are the consequences of violating GAAP?

2. Identify the most important securitization accounting standards under GAAP and explain how they function.

3. Debate the authors assertion that even the most primitive risk measurement environment within the framework of structured finance is superior to that of securitization accounting today.

4. Characterize the taxonomy of reporting requirements for suppliers and seekers of capital under GAAP. Contrast this with the customary reporting requirements in structured finance and securitization.

5. What feature of the GAAP framework is incompatible with the principles of risk measurement in securitization?

6. What does GAAP say about fair value and fair value measurement?