Accounting

Accounting issues encompass some of the most important banking functions and practices such as auditing, internal controls, disclosure, and supervisory financial reporting. The Federal Reserve’s accounting guidance primarily addresses changes to regulatory financial reports and capital or other supervisory requirements arising from changes in accounting, auditing or internal control standards.

Policy Letters

Current Expected Credit Losses (CECL) Methodology

Interagency Policy Statement on Allowances for Credit Losses

Joint Statement on Interaction of the Regulatory Capital Rule: Revised Transition of the CECL Methodology for Allowances with Section 4014 of the Coronavirus Aid, Relief, and Economic Security Act

Frequently Asked Questions on the Current Expected Credit Losses Methodology (CECL)

Interagency Guidance on the New Accounting Standard on Financial Instruments – Credit Losses

Fair Value Accounting General Accounting Topics

Joint Statement on Additional Loan Accommodations Related to COVID-19

Statement on the Implications of the New Lease Accounting Standard on Regulation H

Interagency Statement on Accounting and Reporting Implications of the New Tax Law

Interagency Guidance on the New Accounting Standard on Financial Instruments – Credit Losses

Interagency Frequently Asked Questions (FAQs) on the Regulatory Capital Rule

Addendum to the Interagency Policy Statement on Income Tax Allocation in a Holding Company Structure

Guidance on Managing Outsourcing Risk

Uniform Agreement on the Classification and Appraisal of Securities Held by Depository Institutions

Interagency Supervisory Guidance Addressing Certain Issues Related to Troubled Debt Restructurings

Interagency Guidance on Leveraged Lending

Policy Statement on Rental of Residential Other Real Estate Owned (OREO) Properties

Interagency Guidance on Allowance Estimation Practices for Junior Lien Loans and Lines of Credit

Interagency Supervisory Guidance on Bargain Purchases and FDIC- and NCUA-Assisted Acquisitions

Accounting and Reporting for Commitments to Originate and Sell Mortgage Loans

Interagency Statement on the Purchase and Risk Management of Life Insurance

Accounting for Deferred Compensation Agreements

Risk Management and Valuation of Mortgage Servicing Assets Arising from Mortgage Banking Activities

Derivative Contracts Hedging Trust Preferred Stock

Interagency Guidance on Loans Held for Sale

Supervisory Guidance on Equity Investment and Merchant Banking Activities

Interagency Policy Statement on Income Tax Allocation in a Holding Company Structure

FFIEC Policy Statement on Investment Securities and End-User Derivatives Activities

Regulatory Reporting Requirements for Debt and Equity Securities

Subchapter S Election for Federal Income Taxes

Securitization and Structured Finance

Interagency Guidance on Leveraged Lending

Interagency Statement on Sound Practices Concerning Elevated Risk Complex Structured Finance Activities

Implicit Recourse Provided to Asset Securitizations

Risk Management and Valuation of Retained Interests Arising from Securitization Activities

Additional Resources

Manual References

  • Bank Holding Company Supervision Manual
    • Section 2065.1, "Nonaccrual Loans and Restructured Debt (Accounting, Reporting, and Disclosure Issues)"
    • Section 2065.2, "Determining an Adequate Level for the Allowance for Loan and Lease Losses (Accounting, Reporting, and Disclosure Issues)"
    • Section 2065.3, "Maintenance of an Appropriate Allowance for Loan and Lease Losses (Accounting, Reporting, and Disclosure Issues)"
    • Section 2065.4, "ALLL Methodologies and Documentation (Accounting, Reporting, and Disclosure Issues)"
    • Section 4060.3, "Consolidated Capital (Examiners’ Guidelines for Assessing the Capital Adequacy of BHCs)"
  • Commercial Bank Examination Manual
    • Section 1010.1, "Internal Control and Audit Function, Oversight, and Outsourcing"
    • Section 2020.1, "Investment Securities and End-User Activities"
    • Section 2200.1, "Other Real Estate Owned"
    • Sections 4042.1, "Purchase and Risk Management of Life Insurance"
    • Section 4030.1, "Asset Securitization"
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Last Update: April 21, 2023