Board of Governors of the Federal Reserve System

Data Dictionary

Item Number J859

Call confidentiality applies to FFIEC 031/041.

Data Description:

The purpose of this account is to allow for the recognition of income from services in the month in which it is earned and income from explicitly priced float in the month incurred. Accruals may be made daily but should not be less than weekly, on Wednesday or the preceding business day before Wednesday if Wednesday is a holiday, and at the end of the month. The accruals may be on any suitable basis including projections made from the previous month's experience. Accruals within the month are a means for achieving an orderly growth in earnings. The month-end accrual should be used to adjust the month's earnings to an amount reasonably close to what will actually be realized from the services rendered during the month, unless, of course, the daily or weekly accruals are designed to automatically achieve such results. To avoid duplications in the combined earnings of all Banks, the amounts owed or due from other Reserve Banks should be taken into account in the accrual process.

In order to isolate amounts owed or due from other Reserve Banks, subsidiary accounts should be set up within this general ledger account to include accrued service income due from depository institutions, accrued service income due from other Reserve Banks, and accrued service income due to other Reserve Banks. Thus, the net balance in the general ledger account will be the net amount of income expected to be received for services. With the implementation of the Customer Accounts Receivable System (CARS) in late 2009, the subsidiary accounts (accrued service income due from and due to other Reserve Banks) are no longer used. Accrued service income will be recognized at the Reserve Bank, i.e. Atlanta, Chicago, and New York, which recognizes the service income.