Skip to main content
U.S. flag
An official website of the United States government
Dot gov
The .gov means it’s official. 
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.
Https
The site is secure. 
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
INACTIVE
This page is no longer active. Its content has expired or been rescinded by the FDIC.

Accounting and Reporting

Accounting, Auditing, and Securities Disclosure
March 1, 2004
TO: CHIEF EXECUTIVE OFFICER (also of interest to Chief Financial Officer)
SUBJECT: Update on Accounting for Loan and Lease Losses
Summary: The federal financial institution regulatory agencies are advising institutions about the status of a recent accounting proposal on the allowance for loan and lease losses and reminding institutions of the existing accounting and supervisory guidance that they should follow when determining the appropriate amount for their allowance.

The Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Office of Thrift Supervision and the National Credit Union Administration have jointly issued the attached guidance that addresses recent developments in accounting for loan and lease losses. The guidance provides an update on the status of the proposed Statement of Position, "Accounting for Credit Losses," which was issued in June 2003 by the Accounting Standards Executive Committee of the American Institute of Certified Public Accountants. It also identifies the current sources of generally accepted accounting principles and supervisory guidance regarding allowances for loan and lease losses that institutions should continue to apply.

For further information, please contact your FDIC Regional Accountant or Senior Policy Analysts Christine M. Bouvier (202) 898-7289 or Harrison E. Greene, Jr. (202) 898-8905.

For your reference, FDIC Financial Institution Letters may be accessed on the FDIC's Web site at www.fdic.gov/news/financial-institution-letters/2004/index.html . To learn how to automatically receive FDIC Financial Institution Letters through e-mail, please visit www.fdic.gov/news/news/announcements/index.html .

Michael J. Zamorski
Director
Division of Supervision and Consumer Protection

# # #

Distribution: FDIC-Supervised Banks (Commercial and Savings)

NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342 or (703) 562-2200).



Attachment(s)
https://www.fdic.gov/news/inactive-financial-institution-letters/2004/fil2204a.html

Last Updated: March 1, 2004