Board of Governors of the Federal Reserve System

Data Dictionary

Item Number 3856

Call confidentiality applies to FFIEC 031/041.

Data Description:

Includes:

1. The tax benefit of pre-acquisition NOL carryforwards realized in a period subsequent to the loss period (refer to FAS No. 16, "Prior Period Adjustments");

2. Prepayment fees and most other gains or losses on the extinguishment of debt (refer to FAS No. 76, "extinguishment of Debt"); and

3. Gains on restructuring payables (refer to FAS No. 15, "Accounting by Debtors and Creditors for Troubled Debt Restructuring").

Rarely do events or transactions qualify for treatment as extraordinary items. Among these are:

The excess of fair value over cost of net assets acquired in a purchase business combination (negative goodwill) recognized in earnings at the date of combination.

Losses that result directly from a major disaster such as an earthquake (except in areas where earthquakes are expected to recur in the foreseeable future);

Gains or losses from a government expropriation;

Gains or losses from discontinued operations; or

Losses from a prohibition under a newly enacted law or regulation.

Excludes:

1. Adjustments to valuation allowances; reported in item 0484 or 0498, even if the actual loss occurred in a prior period;

2. Audit adjustments for corrections of accruals; reported in the current period on the same line in Schedule SO that they would have been reported had the accruals been made when incurred. If this causes interest yield or cost of funds to be significantly distorted or causes the amount reported to be negative on a line item that can only contain a positive number, report the adjustment in item 0493 or 0499;

3. Adjustments for periods for which the cycle is open for amendments to the TFR; refer to the general instructions for the submission of amended reports;

4. Adjustments related to prior interim periods of the reporting thrift's current fiscal year; report currently in the appropriate income or expense line (e.g., tax adjustments, reported in item 4288 or 4299); and

5. Net income or loss allocable to minority shareholders. Report in item 0493.

6. Gains and losses on extinguishments of debt that do not meet the criteria in APB Opinion No. 30 for classification as an extraordinary item.

Extraordinary items:

Extraordinary items are material events and transactions that are unusual and infrequent. Both of these conditions must exist for an event or transaction to be an extraordinary item.

To be unusual, an event or transaction must be highly abnormal or clearly unrelated to the ordinary and typical activities of the thrift. An event or transaction beyond the control of management is not automatically considered unusual.

To be infrequent, an event or transaction should not reasonably be expected to recur in the foreseeable future. Although the past occurrence of an event or transaction provides a basis for estimating the likelihood of its future occurrence, the absence of a past occurrence does not automatically imply that an event or transaction is infrequent.

Rarely do events or transactions qualify for treatment as extraordinary items. Among these are: The excess of fair value over cost of net assets acquired in a purchase business combination (negative goodwill) recognized in earnings at the date of combination; losses which result directly from a major disaster such as an earthquake (except in areas where earthquakes are expected to recur in the foreseeable future); gains or losses from government expropriation; or losses from prohibition under a newly enacted law or regulation.

NOTE:

Prior to 6/30/02, included:

1. The tax benefit of pre-acquisition NOL carryforwards realized in a period subsequent to the loss period (refer to FAS No. 16, "Prior Period Adjustments");

2. Prepayment fees and most other gains or losses on the extinguishment of debt (refer to FAS No.76, "Extinguishment of Debt"); and

3. Gains on restructuring payables (refer to FAS No. 15, "Accounting by Debtors and Creditors for Troubled Debt Restructuring").

Excluded item 5, adjustments to retained earnings as a result of eliminating deferrals pursuant to 563c.14; reported in item 4697.

This item is reported as confidential.