Changes to financial statements filed with the Federal Reserve by nonbank subsidiaries of U.S. holding companies and banking organizations are proposed in a notice scheduled for publication in the Federal Register May 1; a 60-day comment period is provided. The changes, accompanying a three-year extension of the reports themselves, would be similar to some proposed recently for holding company statements (FR Y-9 family of reports) and the Federal Financial Institutions Examination Council (FFIEC) Consolidated Reports of Condition and Income (FFIEC 031, 041, and 051). Changes would be effective for reports reflecting the June 30, 2018, report date.
The specific reports to be revised are the Financial Statements of U.S. Nonbank Subsidiaries of U.S. Holding Companies (FR Y-11), Financial Statements of Foreign Subsidiaries of U.S. Banking Organizations (FR 2314), and Financial Statements of U.S. Nonbank Subsidiaries Held by Foreign Banking Organizations (FR Y-7N). The proposed changes would (1) add a new data item to the balance sheet to separate and reclassify equity securities with readily determinable fair values from the “available for sale” category in accordance with Accounting Standards update (ASU) No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” and (2) add new data items to the income statement to reflect the proper reporting of income associated with these securities.
Also proposed for extension, but without revision, are the abbreviated forms of the above-noted reports (FR Y-11S, FR 2314S, FR Y-7NS) and the Capital and Asset Report of Foreign Banking Organizations (FR Y-Q).