(a) In general.
(1) Accounting principles applicable to
reports or statements required to be filed with Federal banking agencies
by insured depository institutions should—
(A) result in financial
statements and reports of condition that accurately reflect the capital
of such institutions;
(B) facilitate effective supervision of the institutions; and
(C) facilitate prompt
corrective action to resolve the institutions at the least cost to
the Deposit Insurance Fund.
1-400.31
(2) (A) Subject to
the requirements of this Act and any other provision of Federal law,
the accounting principles applicable to reports or statements required
to be filed with Federal banking agencies by all insured depository
institutions shall be uniform and consistent with generally acceptable
accounting principles.
(B) If the appropriate Federal banking agency or the Corporation
determines that the application of any generally accepted accounting
principle to any insured depository institution is inconsistent with
the objectives described in paragraph (1), the agency or the Corporation
may, with respect to reports or statements required to be filed with
such agency or Corporation, prescribe an accounting principle which
is applicable to such institutions which is no less stringent than
generally accepted accounting principles.
1-400.32
(3) Before the end of the 1-year period
beginning on the date of the enactment of the Federal Deposit Insurance
Corporation Improvement Act of 1991, each appropriate Federal banking
agency shall take the following actions:
(A) Review—
(i) all accounting
principles used by depository institutions with respect to reports
or statements required to be filed with a Federal banking agency;
(ii) all requirements established
by the agency with respect to such accounting procedures; and
(iii) the procedures and format
for reports to the agency, including reports of condition.
(B) Modify or eliminate
any accounting principle or reporting requirement of such Federal
agency which the agency determines fails to comply with the objectives
and standards established under paragraphs (1) and (2).
(C) Develop and prescribe
regulations which require that all assets and liabilities, including
contingent assets and liabilities, of insured depository institutions
be reported in, or otherwise taken into account in the preparation
of any balance sheet, financial statement, report of condition, or
other report of such institution, required to be filed with a Federal
banking agency.
1-400.33
(b) Uniform accounting of capital standards.
(1) Each appropriate Federal
banking agency shall maintain uniform accounting standards to be used
for determining compliance with statutory or regulatory requirements
of depository institutions.
(2) Any standards in effect on the date
of the enactment of the Federal Deposit Insurance Corporation Improvement
Act of 1991 under section 1215 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 shall continue in effect after
such date of enactment until amended by the appropriate Federal banking
agency under paragraph (1).
1-400.34
(c) Reports to banking committees.
(1) The Federal banking agencies shall
jointly submit an annual report to the Committee on Banking, Finance
and Urban Affairs of the House of Representatives and the Committee
on Banking, Housing, and Urban Affairs of the Senate containing a description
of any difference between any accounting or capital standard used
by any such agency and any accounting or capital standard used by
any other agency.
(2)
Each report submitted under paragraph (1) shall contain an explanation
of the reasons for any discrepancy between any accounting or capital
standard used by any such agency and any accounting or capital standard
used by any other agency.
(3) Each report under this subsection shall be published in the Federal Register.
[12 USC 1831n. As added
by act of Dec. 19, 1991 (105 Stat. 2250) and amended by acts of Dec.
27, 2000 (114 Stat. 3036) and Feb. 15, 2006 (119 Stat. 3615).]
