Summary of Revisions
Effective as of January 1, 2023, Financial Accounting Manual (FAM) revisions are primarily related to the adoption of FASB ASC Topic 326, Financial Instruments – Credit Losses. In addition, revisions have been made to remove old accounting guidance references throughout the document. There was also clarifying guidance around assets added, updates for Workday mapping, and removal of closed facilities.
Summary of Revisions
Chapters 1, 3, 8, and Appendix F
Removed language related to former accounting guidance, including Statement of Financial Accounting Standards (SFAS), FASB Interpretations (FIN), and Statement of Positions (SOP).
Chapters 1 and 8
Updated language in the following paragraphs to reflect the requirement to recognize lifetime expected credit losses on a loan.
- Paragraph 3.10—Allowance for Loan Losses (145-360)
- Paragraph 12.37—Provision for Loan Loss Expense (330-080)
Significantly updated language in the following paragraphs to reflect updates for Current Expected Credit Loss guidance (CECL).
- Paragraph 81.01—Allowance for Loan Losses
- Paragraph 81.02—Recognizing an Allowance for Loan Losses
- Paragraph 81.03—Measuring Loan Losses
- Paragraph 81.05—Interest Income Recognition
- Paragraph 81.06—Valuation Allowance Adjustments
- Paragraph 81.07—Program Specific Analysis
- Paragraph 81.08—Unfunded Commitments
- Paragraph 81.09—Modifications to Debtors Experiencing Financial Difficulty (Formerly Troubled Debt Restructuring)
- Paragraph 81.10—Disclosure (removed)
Chapters 1, 7, 8, and Appendix C. FR 34 Accounts
Due to the closure of facilities that the Federal Reserve created to support the economy during the COVID-19 pandemic, references to the Commercial Paper Funding Facility, Corporate Credit Facilities, Primary Market Corporate Credit Facility, Secondary Market Corporate Credit Facility, Money Market Mutual Fund Liquidity Facility, and Primary Dealer Credit Facility were removed, and corresponding accounts were moved to the closed accounts listing in appendix C.
- Paragraph 2.40—Loans (140-025, 140-050, and 140-055)
- Paragraph 3.04—Loans Payable (145-050)
- Paragraph 4.95—Treasury Credit Protection (170-540)
- Paragraph 70.10—Commercial Paper Funding Facility (145-060, 145-065, and 145-070) (removed)
- Paragraph 70.40—Corporate Credit Facilities (removed)
- Paragraph 70.41—Corporate Credit Facilities—Primary Market Corporate Credit Facility (145-630, 145-631, and 145-632) (removed)
- Paragraph 70.42—Corporate Credit Facilities—Secondary Market Corporate Credit Facility (145-645, 145-646, and 145-647) (removed)
- Paragraph 70.70—Money Market Mutual Fund Liquidity Facility (removed)
- Paragraph 70.80—Primary Dealer Credit Facility (removed)
- Paragraph 70.90—Treasury Equity Contribution (240-475)
- Paragraph 81.01—Allowance for Loan Losses
Chapter 1
Removed the following sections and combined with other FAM sections to align with Workday mapping:
- Paragraph 3.66—Furniture and Equipment—Depreciation (170-050)
- Paragraph 4.21—Deferred Charges (170-225)
- Paragraph 4.24—Prepaid Expenses—Other (170-275)
Renamed the following sections to align with Workday mapping:
- Paragraph 3.60—Bank Premises and Furniture and Equipment—Depreciation (160-125)
- Paragraph 4.20—Deferred Charges and Prepaids (170-225 and 170-275)
Chapter 3
Paragraph 30.01—General and 30.55—Pooled Asset Method: Added clarifying language on when depreciation starts for capitalized bulk purchases.
Paragraph 30.05—Historical Information: Clarified guidance under Accounting for Asset Retirement Obligations (FASB ASC Topic 410-20) and added a reference to Accounting for Environmental Obligations (FASB ASC Topic 410-30).
Paragraph 30.90—Disposals and Trade-ins: Clarified guidance on what is considered a disposal.
Appendix D
Updated section references to accurately reflect the correct section. References made to Sections 4, 7, and 8 were updated to Sections 5, 8, and 9, respectively.