This excerpt taken from the LUX 20-F filed Jun 28, 2006.
Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. The statement
· Permits fair value remeasurement for any hybrid financial instrument that contains an embedded derivative that otherwise would require bifurcation;
· Clarifies which interest-only strips and principal-only strips are not subject to the requirements of Statement No. 133;
· Establishes a requirement to evaluate interests in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation;
· Clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives; and
· Amends Statement No. 140 to eliminate the prohibition on a qualifying special-purpose entity from holding a derivative financial instrument that pertains to a beneficial interest other than another derivative financial instrument.
SFAS 155 is effective for all financial instruments acquired or issued after the beginning of an entitys first fiscal year that begins after September 15, 2006. The adoption of SFAS 155 is not expected to have a material effect on the Companys consolidated financial statements.