FDIC Law, Regulations, Related Acts
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1000 - Federal Deposit Insurance Act
SEC. 37. ACCOUNTING OBJECTIVES, STANDARDS, AND
REQUIREMENTS.
(a) In General.--
(1) OBJECTIVES.--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.
(2) STANDARDS.--
(A) UNIFORM ACCOUNTING PRINCIPLES CONSISTENT WITH
GAAP.--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 accepted accounting principles.
(B) STRINGENCY.--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.
(3) REVIEW AND IMPLEMENTATION OF ACCOUNTING PRINCIPLES
REQUIRED.--Before the end of the 1-year period beginning on
[December 19, 1991], 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 OF ACCOUNTING PRINCIPLES.--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) MODIFICATION OF NONCOMPLYING MEASURES.--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) INCLUSION OF "OFF BALANCE SHEET"
ITEMS.--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.
[Codified to 12 U.S.C. 1831n(a)]
[Source: Section 2[37(a)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 121(a) of title I of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2250), effective December 19, 1991; amended by
section 1221 of title XII of the Act of December 27, 2000 (Pub. L. No.
106--569; 114 Stat. 3036), effective December 27, 2000; section
8(a)(35) of the Act of February 15, 2006 (Pub. L. No. 109--173; 119
Stat. 3615), effective date shall take effect on the day of the merger
of the Bank Insurance Fund and the Savings Association Insurance Fund
pursuant to the Federal Deposit Insurance Reform Act of
2005]
(b) Uniform Accounting of Capital Standards.--
(1) IN GENERAL.--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) TRANSITION PROVISION.--Any standards in effect on
[December 19, 1991], 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 [December 19, 1991], such date of
enactment until amended by the appropriate Federal banking agency under
paragraph (1).
[Codified to 12 U.S.C. 1831n(b)]
[Source: Section 2[37(b)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 121(a) of title I of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2250), effective December 19,
1991]
(c) Reports to Banking Committees.--
(1) ANNUAL REPORTS REQUIRED.--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) EXPLANATION OF REASONS FOR DISCREPANCY.--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) PUBLICATION.--Each report under this subsection
shall be published in the Federal Register.
[Codified to 12 U.S.C. 1831n(c)]
[Source: Section 2[37(c)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 121(a) of title I of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2250), effective December 19, 1991; amended by
section 1223 of title XII of the Act of December 27, 2000 (Pub. L. No.
106--569; 114 Stat. 3036), effective December 27, 2000]
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