Accounting for elimination of recognition and measurement of troubled debt restructurings by creditors, loan modifications, and credit losses – and more – are all covered by updates to the bank accounting series by the national bank regulator, the agency said Tuesday.
The Office of the Comptroller of the Currency (OCC), in releasing its annual update to the Bank Accounting Advisory Series (BAAS), indicated that the issues covered were derived from staff responses to frequently asked questions from banks and examiners on a variety of accounting topics. The agency said the update “promotes consistent application of accounting standards and regulatory reporting among national banks and federal savings associations.”
The specific issues listed by the OCC – troubled debt restructurings by creditors, loan modifications, and credit losses – reflect updates issued by the Financial Accounting Standards Board (FASB) meant to clarify the application of accounting standards, the agency said.
The OCC also noted (as it does typically) that the accounting series does not represent rules or regulations of the agency. It does represent, the agency said, its Office of the Chief Accountant’s interpretations of generally accepted accounting principles and regulatory guidance “based on the facts and circumstances presented.”