Sec. 37. ACCOUNTING OBJECTIVES, STANDARDS, AND REQUIREMENTS
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## SEC. 37 ACCOUNTING OBJECTIVES, STANDARDS, AND REQUIREMENTS **[**[12 U.S.C. 1831n](/us/usc/t12/s1831n)**]** ###
(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 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. ###
(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 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). ###
(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.
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Sec. 37
ACCOUNTING OBJECTIVES, STANDARDS, AND REQUIREMENTS
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