12 U.S.C. § 1831n — Accounting objectives, standards, and requirements

(a) In general (1) Objectives. Accounting principles for required reports and statements should (A) make financial statements and reports of condition accurately show the institution's capital, (B) support effective supervision, and (C) support prompt corrective action to resolve problems at the least cost to the Deposit Insurance Fund. (2) Standards. (A) Subject to this chapter and other Federal law, all insured depository institutions must use uniform accounting principles consistent with generally accepted accounting principles for reports filed with Federal banking agencies. (B) If an agency or the Corporation decides that applying a GAAP principle to an institution conflicts with paragraph (1), it may prescribe a principle for the required reports that is at least as strict as GAAP. (3) Review and implementation. Within one year beginning December 19, 1991, each agency must (A) review (i) all accounting principles used for required reports, (ii) its requirements for those procedures, and (iii) its report procedures and format, including reports of condition; (B) change or eliminate any principle or reporting requirement that fails the paragraph (1) and (2) objectives and standards; and (C) issue rules requiring all assets and liabilities, including contingent assets and liabilities, to be reported in or otherwise considered when preparing required balance sheets, financial statements, reports of condition, or other reports. (b) Uniform accounting of capital standards (1) Each appropriate Federal banking agency must maintain uniform accounting standards for deciding whether depository institutions meet statutory or regulatory requirements. (2) Standards in effect on December 19, 1991, under section 1833d-1 continue until the appropriate agency changes them under paragraph (1). (c) Reports to banking committees (1) The Federal banking agencies must jointly send an annual report to the specified House and Senate banking committees describing every difference between an accounting or capital standard used by one agency and one used by another. (2) The report must explain each difference. (3) The report must be published in the Federal Register.