OCC updates accounting advisory series for banks; covers standards updates through March 2020 (but not COVID)

The federal agency that charters and supervises national banks and federal savings associations on Monday issued the 2020 update to its Bank Accounting Advisory Series (BAAS), a publication that provides the agency’s interpretations of accounting topics relevant to those institutions.

The Office of the Comptroller of the Currency (OCC), in its bulletin Monday announcing the update, said the 2020 update addresses ongoing accounting questions, newly issued accounting standards, and emerging issues observed through March 31. This includes, among other things, FASB issuances related to troubled debt restructurings, credit losses, and frequently asked questions from the industry and examiners.

It said the update does not focus on questions related to the impact of the coronavirus (COVID-19) or new policy statements and rules issued to respond to it. “COVID-19 policy statements and rules address specific challenges and are not intended to be analogized in non-COVID-19 situations,” the OCC’s chief accountant stated in a message prefacing the document.

New questions added in the 2020 edition of the BAAS include:

  • Topic 5B, Life Insurance and Related Deferred Compensation (Question 8)
  • Topic 7B, Tax Sharing Arrangements (Question 5)
  • Topic 12B, Troubled Debt Restructurings (Questions 10 and 11)
  • Topic 12C, Acquired Loans (Question 9)
  • Topic 12D, Allowance for Credit Losses (Questions 24, 25, and 26)

Updated questions include:

  • Topic 1A, Investments in Debt and Equity Securities (Question 19)
  • Topic 5A, Other Real Estate Owned (Question 31)
  • Topic 12D, Allowance for Credit Losses (Question 11)

The BAAS does not represent rules or regulations of the OCC,” the agency said in Monday’s bulletin. “Rather, it represents the OCC’s Office of the Chief Accountant’s interpretations of generally accepted accounting principles and regulatory guidance based on the facts and circumstances presented.”

OCC Bulletin 2020-76

OCC actions, issuances related to COVID-19