Financial Accounting Manual for Federal Reserve Banks, January 2017
Print- Introduction
- Abbreviations
- Summary of Revisions
- Chapter 1. Balance Sheet
- Chapter 2. Collateral and Custodies
- Chapter 3. Property and Equipment
Summary of Revisions
Revisions are effective as of January 1, 2017. The 2017 Financial Accounting Manual revisions are a result of the December 2015 enactment of "Fixing America"s Surface Transportation Act" (FAST Act), which amended Section 7(a) of the Federal Reserve Act and changing to the effective interest method for the SOMA portfolio.
Summary of Revisions
Chapter 1
Revised the following paragraphs to reflect the dividend and surplus changes as a result of the FAST Act:
- Paragraph 11.50 Accrued Dividends Unpaid
- Paragraph 11.96, previously titled "Interest on Federal Reserve Notes," was renamed "Accrued Remittances to Treasury/Deferred Asset"
- Paragraph 12.10 Surplus
- Paragraph 12.60, previously titled "Interest paid on Federal Reserve Notes," was renamed "Earnings Remittances to Treasury"
- Paragraph 12.65 Transferred to or From Surplus
Chapter 1 and 4
Revised the following paragraphs to reflect the change to the SOMA portfolio to the effective interest method for premiums and discounts:
- Paragraph 4.00 Premium on Securities (170-175)
- Paragraph 11.52 Discount on Securities (240-075)
- Paragraph 40.01 General
- Paragraph 40.10 U.S. Treasury, Federal Agency, and GSE Debt Securities
- Paragraph 40.30 Foreign Currency Denominated Investments
Revised the following paragraphs to reflect the recognition of negative interest income earned:
- Paragraph 40.30 Foreign Currency Denominated Investments
- Paragraph 40.60 Interest Earnings and Expense
Chapter 6
Revised the following paragraphs to reflect the dividend and surplus changes as a result of the FAST Act:
- Paragraph 60.37 Financial Results of Operations
- Paragraph 60.55, previously titled "Interest on Federal Reserve Notes," was renamed "Earnings Remittances to Treasury Calculations"
Chapter 8
Revised the following paragraphs to reflect the Accounting Standard Update 2015-02 Consolidation:
- Paragraph 82.01 Consolidation
- Paragraph 82.02 Evaluating consolidation based on variable interests
- Paragraph 82.03 Reconsideration of primary beneficiary
