[Federal Register: May 17, 2000 (Volume 65, Number 96)]
[Notices]
[Page 31324]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17my00-62]
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GENERAL ACCOUNTING OFFICE
Federal Accounting Standards Advisory Board
AGENCY: General Accounting Office.
ACTION: Notice of new exposure draft on accounting for Direct Loans and
Loan Guarantees.
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Board Action: Pursuant to the Federal Advisory Committee Act (Pub.
L. No. 92-463), as amended, and the FASAB Rules of Procedure, as
amended in October 1999, notice is hereby given that the Federal
Accounting Standards Advisory Board (FASAB) has released for public
comment an exposure draft (ED) on accounting for Direct Loans and Loan
Guarantees. Comments are solicited and should be submitted by August
10, 2000.
A summary of the proposed Statement follows:
FASAB Published a New Exposure Draft on Accounting for Direct Loans
and Loan Guarantees
On May 10, 2000, the Federal Accounting Standards Advisory Board
(FASAB) released for public comment an exposure draft (ED) on
accounting for Direct Loans and Loan Guarantees. Contained in the ED is
a proposed standard that would require that in a note to their
financial statements, reporting entities display for each major program
and for the entity as a whole reconciliations between the beginning and
ending balances of: (a) The subsidy cost allowance for direct loans and
(b) the liability for loan guarantees. Entity management would be
responsible for identifying major programs on the basis of each
reporting entity's specific circumstances. The proposed standard states
that the major programs that are reconciled individually should
constitute at least 75 percent of the face amount of the reporting
entity's outstanding direct or guaranteed loans. The reconciliation of
other programs should be displayed in aggregate.
The proposed requirement for program-by-program reconciliation for
major credit programs follows the Board's adoption in SFFAS No. 18 a
requirement that reporting entities display reconciliation for direct
loan subsidy allowance and loan guarantee liability reported on the
entity's balance sheet. The Board believed that while the entity-wide
reconciliation will provide information on the aggregate operating
results of all credit programs under the entity's management, the
program-by-program reconciliation would provide information on the
performance of specific programs. Since the entity-wide reconciliation
has been adopted in SFFAS No. 18, it is not a subject of the ED.
Comments are requested on the proposed requirement for program-by-
program reconciliation for major programs.
Comments are also solicited on a number of proposed technical
amendments to SFFAS No. 2, Accounting for Direct Loans and Loan
Guarantees. Some of those technical amendments are proposed to clarify
that the accounting standards are consistent with the cash flow
discount method required by the amendment enacted in July 1997 to the
Federal Credit Reform Act of 1990. Other technical amendments proposed
in this ED would clarify: (a) The use of discount rates adjusted by
interest rate reestimates, and (b) the measurement of default costs of
direct loans and loan guarantees.
The exposure draft will soon be mailed to FASAB's mailing list
subscribers. Additionally, it is available on FASAB's home page http://
www.financenet.gov/fasab.htm. Copies can be obtained by contacting
FASAB at (202) 512-7350, or mayor.fasab@gao.gov. The Board has posed
specific questions for comment. Respondents are encouraged to address
those questions and to comment on any part of the exposure draft.
Written comments are requested by August 10, 2000, and should be
sent to: Wendy M. Comes, Executive Director, Federal Accounting
Standards Advisory Board, 441 G Street, NW, Suite 6814, Mail Stop
6K17V, Washington, DC 20548.
FOR FURTHER INFORMATION, CONTACT: Wendy Comes, Executive Director, 4412
G St. NW, Room 6814, Washington, DC 20548, or call (202) 512-7350.
Authority: Federal Advisory Committee Act. Pub. L. No. 92-463.
Dated: May 12, 2000.
Wendy M. Comes,
Executive Director.
[FR Doc. 00-12434 Filed 5-16-00; 8:45 am]
BILLING CODE 1610-01-M