Financial Accounting Manual
- Revision Set 54
- Chapter 1. Balance Sheet
- Chapter 2. Collateral and Custodies
- Chapter 3. Property and Equipment
- Chapter 4. System Open Market
- Chapter 5. Federal Reserve Notes
- Chapter 6. Reporting Requirements
- Chapter 8. Special Topics
Revision Set 54, December 2013
Revisions are effective as of January 1, 2014.
Summary of Revisions
Paragraph .45 Quarterly Report - Added a description of the Federal Reserve Banks Combined Quarterly Financial Report,which is published by the Board.
Paragraph 2.40 Loans (140-025 and 140-050) - Modified the policy to require each Bank to submit only its fourth quarter evaluation of loan collectability. Also, removed the account descriptions related to closed lending facilities: the Asset-Backed Commercial Paper Money Market Liquidity Facility, the Primary Dealer Credit Facility, and the Commercial Paper Funding Facility LLC.
Added the following new general ledger accounts:
- Paragraph 3.00 U.S. Government Securities: Floating Rate Notes (142-125) - For the U.S. Treasury floating rate notes.
- Paragraph 3.06 Other Assets - Markets (145-260) - For non-participated, low-value, and infrequent non-SOMA transactions conducted by the New York Reserve Bank.
- Paragraph 3.07 Other Assets - SOMA (145-275) - For participated, low-value, and infrequent SOMA transactions conducted by the New York Reserve Bank.
- Paragraph 11.98 Other Liabilities - Markets (240-950) - For non-participated, low-value, and infrequent non-SOMA transactions conducted by the New York Reserve Bank.
Removed the following account descriptions and accounting policy for closed programs:
- Paragraph 3.03 Consolidated Commercial Paper Funding Facility LLC Accounts (145-050, 145-055, 145-060, 145-065, and 145-070)
- Paragraph 3.09 AIG Allowance for Loan Modification (145-345)
- Paragraph 3.11 AIG Loan and Capitalized Interest (145-375)
- Paragraph 3.14 Preferred Securities (145-830, 145-845, 145-860, 145-875)
- Paragraph 4.93 Securities Borrowing (170-500)
- Paragraph 11.81 Earnings Credits Due to Depository Institutions (240-175)
- Paragraph 11.90 Accumulated proceeds - AIG (240-470)
- Paragraph 12.35 Cost of Earnings Credits (330-075)
Paragraph 4.94 Central Bank Liquidity Swap Accounts (170-525, 170-530) - Clarified the policy for U.S. dollar liquidity and foreign currency liquidity swaps.
Paragraph 11.70 Sundry Items Payable (240-125) - Modified the description of the types of transactions recorded in this account to exclude the cash collateral posted by counterparties pursuant to the commitments to purchase mortgage-backed securities.
Paragraph 11.94 Federal Agency MBS Fails (240-875) - Modified the description of the types of transactions recorded in this account to include the cash collateral posted by counterparties pursuant to the commitments to purchase mortgage-backed securities.
Paragraph 30.75 Depreciation - Clarified depreciation policy for impaired assets.
Changed the chapter title from Central Bank Unique Accounting to System Open Market Account and restructured the chapter to enhance understandability and flow.
Paragraph 40.13 Federal Agency and GSE Mortgage-Backed Securities (MBS) - Clarified the policy related to the accounting for MBS commitment margin balance interest expense and charges to counterparties for failing to deliver collateral.
Paragraph 40.50 Central Bank Liquidity Swaps - Clarified the policy related to U.S. dollar and foreign currency liquidity swaps.
Paragraph 40.55 Foreign Deposits - Removed the policy related to foreign deposits, which is redundant Paragraph 10.60.
Paragraph 40.70 SOMA Participation - Clarified the policy related to SOMA activity participation with the addition of discussion for the foreign currency activity participation.
Paragraph 60.70 Charges Assessed and Waived for Deficiencies in Required Balances and Paragraph 60.96 RBOPS Financial Accounting Reports System (RFARS) -- As a result of the changes to reserve requirements effective June 27, 2013, eliminated the requirements for Reserve Banks to submit the FR1217.
Paragraph 60.94 Real Estate Reporting Requirements Annual and Special and Paragraph 60.96 RBOPS Financial Accounting Reports System (RFARS) - Added to the instructions for FR892 in section 2.g. a requirement to report the number of Bank employees that occupy the leased space. Removed the requirement for reporting FR892 in the RFARS; the report is submitted via email.
Paragraph 81.01 Allowance for Loan Losses - Removed the policy specific to loans that were extended under lending facilities that are now closed.
Paragraph 81.07 Program Specific Analysis - Modified the policy to require each Bank to submit only its fourth quarter evaluation of loan collectability. Conformed the text to changes made by the Dodd-Frank Act to the Reserve Banks' authorization to extend emergency credit and removed the accounting policy related to closed lending facilities.
Appendix A.1 Currency Shipment - Removed accounting instructions for currency shipments that are no longer applicable. Revised instructions are available in the Board's notes accountability system.
Appendix D Software, Section 6. Capitalizable costs during software development - Clarified the accounting policy related to the internally developed software parallel testing and processing accounting policy.