Summary of Revisions

Revisions are effective as of January 1, 2021. The 2021 Financial Accounting Manual (FAM) revisions include accounts related to funding the new credit, liquidity, and loan facilities; updates to accounting for equipment and furniture; and the clarification of existing policies.

Summary of Revisions

Chapter 1

Modified the following sections to reflect the changes in account activity and new funding, credit, liquidity, loan facilities, and SOMA operations:

  • Paragraph 1.00 - General
  • Paragraph 2.40 - Loans (140-025, 140-050, and 140-055)
  • Paragraph 2.75 - Securities Held Under Repurchase Agreements (140-075)
  • Paragraph 2.95 - Federal Agency Obligations, U.S. Treasury Securities, and Federal Agency and GSE Mortgage-Backed Securities: Held Under Repurchase Agreement (140-225)
  • Paragraph 3.01 - Foreign and International Monetary Authorities Repurchase (142-150)
  • Paragraph 3.04 - Loans Payable (145-050)
  • Paragraph 3.08 - Federal Agency and GSE Mortgage-Backed Securities (145-300, 145-315, and 145-330)
  • Paragraph 3.94 - FDIC assumed indebtedness; MMLF Collateral; PPPLF Collateral; Asset Backed Commercial Paper Collateral (170-140)
  • Paragraph 4.95 - Treasury Credit Protection (170-540)
  • Paragraph 11.94 - Federal Agency MBS Related Liabilities (240-875)
  • Paragraph 12.00 - Reverse Repurchase Agreements—Foreign Official and International Accounts (242-120)
  • Paragraph 12.01 - Reverse Repurchase Agreements—Primary dealers and expanded counterparties (242-140)

Modified the following sections for updates made to building machinery and equipment:

  • Removed: Paragraph 3.50 - Bank Premise—Machinery and Equipment (160-075)
  • Paragraph 3.60 - Bank Premises—Depreciation (160-125)
  • Paragraph 3.65 - Furniture and Equipment (170-025)

Modified the following sections to include updates made to the reserve requirements ratios:

  • Paragraph 10.30 - Deposits—Depository Institutions (220-025)
  • Paragraph 11.86 - Interest on Reserves Accounts—Interest Due to Depository Institutions (240-430)
  • Paragraph 12.36 - Interest on Reserves and Term Deposits—Interest Expense (330-078)

Paragraph 12.33 - Other Components of Net Benefit Costs (330-060)—Updated language to include all retirement plans, which now book service cost separately.

Paragraph 12.60 - Earnings Remittances to Treasury (330-200)—Moved language of daily accrual of remittances from Paragraph 12.10 - Surplus to a more appropriate chapter, Paragraph 12.60.

Chapter 3

Modified the following paragraphs to remove the separate building machinery and equipment asset account and combine into the equipment account; remove the pooled asset method for furniture, furnishings, and fixtures; and increase the capitalization threshold to $10,000 for furniture and equipment.

Paragraph 30.46 - Examples of Classification of Capitalized Furniture and Equipment Assets—Equipment threshold was updated to $10,000 and virtual servers were removed. Spare sensors were added to operating equipment. Building machinery & equipment are now included in this listing.

Modified the following sections to clarify use of tenant improvements and lease incentives.

Chapter 7

This is a new Chapter to highlight the establishment of the new funding, credit, liquidity, and loan facilities as a result of the COVID-19 pandemic.

Appendix A

Modified for updates around the accounting for spare sensors.

Appendix C

The list of closed accounts was updated to remove those recently reactivated.

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Last Update: January 11, 2021