Proposed Agency Information Collection Activities; Comment Request, 12269-12272 [05-4664]
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Federal Register / Vol. 70, No. 47 / Friday, March 11, 2005 / Notices
may be obtained by calling the Treasury
Bureau Clearance Officer listed.
Comments regarding this information
collection should be addressed to the
OMB reviewer listed and to the
Treasury Department Clearance Officer,
Department of the Treasury, Room
11000, 1750 Pennsylvania Avenue,
NW., Washington, DC 20220.
DATES: Written comments should be
received on or before April 11, 2005 to
be assured of consideration.
Internal Revenue Service (IRS)
OMB Number: 1545–1626.
Form Number: IRS Form 1065–b AND
Schedule K–1.
Type of Review: Extension.
Title: Form 1065: U. S. Return of
Income for Electing Large Partnerships;
and Schedule K–1: Partner’s Share of
Income (Loss) From an Electing Large
Partnership.
Description: Code sections 771–777
allow large partnerships to elect to file
a simplified return which requires fewer
items to be reported to partners.
Respondents: Business or other forprofit.
Estimated Number of Respondents/
Recordkeepers: 100.
Estimated Burden Hours Per
Respondent/Recordkeeper:
Form
Recordkeeping
Learning about the
law or the form
Preparing the form
Form 1065–B .................................................
Schedule D (Form 1065–B) ...........................
Schedule K–1 (Form 1065) ............................
Schedule L (Form 1065) ................................
Schedule M–1 (Form 1065) ...........................
Schedule M–2 (Form 1065–B) .......................
52 hr., 24 min ............
14 hr., 6 min ..............
9 hr., 34 min ..............
15 hr., 46 min ............
3 hr., 21 min ..............
3 hr., 6 min ................
23 hr., 51 min ............
2 hr., 40 min ..............
7 hr., 43 min ..............
12 min ........................
12 min ........................
6 min ..........................
35 hr., 2 min ..............
3 hr., 1 min ................
11 hr., 57 min ............
27 min.
15 min.
9 min.
Frequency of Response: Annually.
Estimated Total Reporting/
Recordkeeping Burden: 487,225 hours.
OMB Number: 1545–1915.
Notice Number: Notice 2005–04.
Type of Review: Extension.
Title: Fuel Tax Guidance.
Description: This notice provides
guidance on certain excise tax Code
provisions that were added or effected
by the American Jobs Creation Act of
2004, Pub. L. 108–357. The information
will be used by the IRS to verify that the
proper amount of tax is reported,
excluded, refunded, or credited.
Respondents: Business or other forprofit, Not-for-profit institutions, Farms,
Federal Government, State, Local or
Tribal Government.
Estimated Number of Respondents/
Recordkeepers: 20,263.
Estimated Burden Hours Respondent/
Recordkeeper: 1 hour, 41 minutes.
Estimated Total Reporting/
Recordkeeping Burden: 34,390 hours.
Clearance Officer: Glenn P. Kirkland,
Internal Revenue Service, Room 6516,
1111 Constitution Avenue, NW.,
Washington, DC 20224, (202) 622–3428.
OMB Reviewer: Joseph F. Lackey, Jr.,
Office of Management and Budget,
Room 10235, New Executive Office
Building, Washington, DC 20503, (202)
395–7316.
Lois K. Holland,
Treasury PRA Clearance Officer.
[FR Doc. 05–4823 Filed 3–10–05; 8:45 am]
BILLING CODE 4830–01–P
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE
CORPORATION
Proposed Agency Information
Collection Activities; Comment
Request
AGENCIES: Office of the Comptroller of
the Currency (OCC), Treasury; Board of
Governors of the Federal Reserve
System (Board); and Federal Deposit
Insurance Corporation (FDIC).
ACTION: Joint notice and request for
comment.
SUMMARY: In accordance with the
requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C.
chapter 35), the OCC, the Board, and the
FDIC (the ‘‘agencies’’) may not conduct
or sponsor, and the respondent is not
required to respond to, an information
collection unless it displays a currently
valid Office of Management and Budget
(OMB) control number. The Federal
Financial Institutions Examination
Council (FFIEC), of which the agencies
are members, has approved the
agencies’ publication for public
comment of proposed revisions to the
Consolidated Reports of Condition and
Income (Call Report), which are
currently approved collections of
information. At the end of the comment
period, the comments and
recommendations received will be
analyzed to determine the extent to
which the FFIEC and the agencies
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Copying, assembling,
and sending the form
to the IRS
2 hr., 40 min.
1 hr., 4 min.
should modify the proposed revisions
prior to giving final approval. The
agencies will then submit the revisions
to OMB for review and approval.
DATES: Comments must be submitted on
or before May 10, 2005.
ADDRESSES: Interested parties are
invited to submit written comments to
any or all of the agencies. All comments,
which should refer to the OMB control
number(s), will be shared among the
agencies.
OCC: You may submit comments,
identified by [Attention: 1557–0081], by
any of the following methods:
• E-mail:
regs.comments@occ.treas.gov. Include
[Attention: 1557–0081] in the subject
line of the message.
• Fax: (202) 874–4448.
• Mail: Public Information Room,
Office of the Comptroller of the
Currency, 250 E Street, SW., Mailstop
1–5, Washington, DC 20219; Attention:
1557–0081.
Public Inspection: You may inspect
and photocopy comments at the Public
Information Room. You can make an
appointment to inspect the comments
by calling (202) 874–5043.
Board: You may submit comments,
which should refer to ‘‘Consolidated
Reports of Condition and Income, 7100–
0036,’’ by any of the following methods:
• Agency Web Site: https://
www.federalreserve.gov. Follow the
instructions for submitting comments
on the https://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail:
regs.comments@federalreserve.gov.
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Federal Register / Vol. 70, No. 47 / Friday, March 11, 2005 / Notices
Include docket number in the subject
line of the message.
• FAX: 202–452–3819 or 202–452–
3102.
• Mail: Jennifer J. Johnson, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue, NW., Washington,
DC 20551.
All public comments are available
from the Board’s Web site at https://
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm as submitted,
except as necessary for technical
reasons. Accordingly, your comments
will not be edited to remove any
identifying or contact information.
Public comments may also be viewed
electronically or in paper in Room MP–
500 of the Board’s Martin Building (20th
and C Streets, NW.) between 9 a.m. and
5 p.m. on weekdays.
FDIC: You may submit comments,
which should refer to ‘‘Consolidated
Reports of Condition and Income, 3064–
0052,’’ by any of the following methods:
• https://www.FDIC.gov/regulations/
laws/federal/propose.html.
• E-mail: comments@FDIC.gov.
Include ‘‘Consolidated Reports of
Condition and Income, 3064–0052’’ in
the subject line of the message.
• Mail: Steven F. Hanft (202–898–
3907), Paperwork Clearance Officer,
Room MB–3064, Federal Deposit
Insurance Corporation, 550 17th Street,
NW., Washington, DC 20429.
• Hand Delivery: Comments may be
hand delivered to the guard station at
the rear of the 550 17th Street Building
(located on F Street) on business days
between 7 a.m. and 5 p.m.
Public Inspection: You may inspect
comments at the FDIC Public
Information Center, Room 100, 801 17th
Street, NW., between 9 a.m. and 4:30
p.m. on business days.
A copy of the comments may also be
submitted to the OMB desk officer for
the agencies: Mark Menchik, Office of
Information and Regulatory Affairs,
Office of Management and Budget, New
Executive Office Building, Room 10235,
Washington, DC 20503, or electronic
mail to mmenchik@omb.eop.gov.
FOR FURTHER INFORMATION CONTACT: For
further information about the revisions
discussed in this notice, please contact
any of the agency clearance officers
whose names appear below. In addition,
copies of Call Report forms can be
obtained at the FFIEC’s Web site
(https://www.ffiec.gov/
ffiec_report_forms.htm).
OCC: Mary Gottlieb, OCC Clearance
Officer, or Camille Dixon, (202) 874–
5090, Legislative and Regulatory
Activities Division, Office of the
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Comptroller of the Currency, 250 E
Street, SW., Washington, DC 20219.
Board: Michelle E. Long, Clearance
Officer, (202) 452–3829, Division of
Research and Statistics, Board of
Governors of the Federal Reserve
System, 20th and C Streets, NW.,
Washington, DC 20551.
Telecommunications Device for the Deaf
(TDD) users may call (202) 263–4869.
FDIC: Steven F. Hanft, Paperwork
Clearance Officer, (202) 898–3907, Legal
Division, Federal Deposit Insurance
Corporation, 550 17th Street, NW.,
Washington, DC 20429.
SUPPLEMENTARY INFORMATION: The
agencies are proposing to revise the Call
Report, which is currently an approved
collection of information for each of the
agencies.
The effect of the proposed revisions to
the reporting requirements will vary
from institution to institution
depending on the extent to which an
institution acquires loans with evidence
of deterioration of credit quality since
origination, including acquisitions of
such loans in business combinations
accounted for using the purchase
method. The agencies expect that the
proposed revisions will generally apply
only to the limited number of
institutions that are involved in
purchase business combinations or that
engage in purchases of loans with credit
quality problems as a business activity.
Furthermore, the proposed revisions
entail the reporting of information
included in disclosures required under
applicable generally accepted
accounting principles. Therefore, the
agencies estimate that the
implementation of these reporting
revisions will result in a nominal
increase in the current reporting burden
imposed on all banks by the Call Report.
The following burden estimates include
the proposed revisions.
Report Title: Consolidated Reports of
Condition and Income (Call Report).
Form Number: FFIEC 031 (for banks
with domestic and foreign offices) and
FFIEC 041 (for banks with domestic
offices only).
Frequency of Response: Quarterly.
Affected Public: Business or other forprofit.
OCC:
OMB Number: 1557–0081.
Estimated Number of Respondents:
2,000 national banks.
Estimated Time per Response: 46.43
burden hours.
Estimated Total Annual Burden:
371,403 burden hours.
Board:
OMB Number: 7100–0036.
Estimated Number of Respondents:
922 state member banks.
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Estimated Time per Response: 52.38
burden hours.
Estimated Total Annual Burden:
193,177 burden hours.
FDIC:
OMB Number: 3064–0052.
Estimated Number of Respondents:
5,332 insured state nonmember banks.
Estimated Time per Response: 37.08
burden hours.
Estimated Total Annual Burden:
790,796 burden hours.
The estimated time per response for
the Call Report is an average, which
varies by agency because of differences
in the composition of the institutions
under each agency’s supervision (e.g.,
size distribution of institutions, types of
activities in which they are engaged,
and existence of foreign offices). For the
Call Report, the average reporting
burden includes the effect on burden of
the new Central Data Repository (CDR)
system for processing Call Reports. The
time per response for the Call Report is
estimated to range from 15 to 600 hours,
depending on an individual institution’s
circumstances, before considering the
effect of voluntary testing and global
enrollment activities related to the CDR.
The reporting burden for testing and
enrollment activities for an individual
institution is estimated to range from 16
to 69 hours, depending on the
institution’s level of participation.
General Description of Reports
These information collections are
mandatory: 12 U.S.C. 161 (for national
banks), 12 U.S.C. 324 (for state member
banks), and 12 U.S.C. 1817 (for insured
state nonmember commercial and
savings banks). Except for selected
items, these information collections are
not given confidential treatment.
Abstract
Institutions file Call Reports with the
agencies each quarter for the agencies’
use in monitoring the condition,
performance, and risk profile of
individual institutions and the industry
as a whole. In addition, Call Reports
provide the most current statistical data
available for evaluating institutions’
corporate applications such as mergers,
for identifying areas of focus for both
on-site and off-site examinations, and
for monetary and other public policy
purposes. Call Reports are also used to
calculate all institutions’ deposit
insurance and Financing Corporation
assessments and national banks’
semiannual assessment fees.
Current Action
I. Overview
This joint notice and request for
comment addresses proposed revisions
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to the Call Report in response to
Statement of Position 03–3, Accounting
for Certain Loans or Debt Securities
Acquired in a Transfer (SOP 03–3),
which was issued by the American
Institute of Certified Public Accountants
(AICPA) and is effective for loans
acquired in fiscal years beginning after
December 15, 2004. The agencies are
proposing to add three items to the Call
Report relating to loans within the scope
of SOP 03–3. In addition, the agencies
are revising the Call Report instructions
to explain how the delinquency status
of loans within the scope of SOP 03–3
should be determined for purposes of
disclosing past due loans in the Call
Report.
The proposed revisions to the Call
Report have been approved for
publication by the FFIEC. The agencies
intend to implement the proposed Call
Report changes as of the June 30, 2005,
report date. Nonetheless, as is
customary for Call Report changes, if the
information required to be reported in
accordance with the proposed reporting
revisions is not readily available,
institutions are advised that they may
report reasonable estimates of this
information for the report date as of
which the proposed changes first take
effect.
Type of Review: Revision of currently
approved collections.
II. Discussion of Proposed Revisions
In December 2003, the AICPA issued
SOP 03–3. In general, this Statement of
Position applies to ‘‘purchased impaired
loans,’’ i.e., loans that a bank has
purchased, including those acquired in
a purchase business combination, when
there is evidence of deterioration of
credit quality since the origination of
the loan and it is probable, at the
purchase date, that the bank will be
unable to collect all contractually
required payments receivable. The
Statement of Position applies to loans
acquired in fiscal years beginning after
December 15, 2004, with early adoption
permitted. Banks must follow SOP 03–
3 for Call Report purposes in accordance
with its effective date based on their
fiscal years. The Statement of Position
does not apply to the loans that a bank
has originated. SOP 03–3 also excludes
certain acquired loans from its scope.
Under SOP 03–3, a purchased
impaired loan is initially recorded at its
purchase price (in a purchase business
combination, the present value of
amounts to be received). The Statement
of Position limits the yield that may be
accreted on the loan (the accretable
yield) to the excess of the bank’s
estimate of the undiscounted principal,
interest, and other cash flows expected
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at acquisition to be collected on the loan
over the bank’s initial investment in the
loan. The excess of contractually
required cash flows over the cash flows
expected to be collected on the loan,
which is referred to as the nonaccretable
difference, must not be recognized as an
adjustment of yield, loss accrual, or
valuation allowance. Neither the
accretable yield nor the nonaccretable
difference may be shown on the balance
sheet. After acquisition, increases in the
cash flows expected to be collected
generally should be recognized
prospectively as an adjustment of the
loan’s yield over its remaining life.
Decreases in cash flows expected to be
collected should be recognized as an
impairment through an addition to the
loan loss allowance.
The Statement of Position prohibits a
bank from ‘‘carrying over’’ or creating
valuation allowances (loan loss
allowances) in the initial accounting for
purchased impaired loans. This
prohibition applies to the purchase of
an individual impaired loan, a pool or
group of impaired loans, and impaired
loans acquired in a purchase business
combination. As a consequence, SOP
03–3 provides that valuation allowances
should reflect only those losses incurred
after acquisition, that is, the present
value of all cash flows expected at
acquisition that ultimately are not to be
received. Thus, because of the
accounting model set forth in SOP 03–
3, banks will need to segregate their
purchased impaired loans, if any, from
the remainder of their loan portfolio for
purposes of determining their overall
allowance for loan and lease losses.
According to the Basis for
Conclusions of SOP 03–3, the AICPA’s
Accounting Standards Executive
Committee ‘‘believes that the accounting
for acquired loans within the scope of
this SOP is sufficiently different from
the accounting for originated loans,
particularly with respect to provisions
for impairment, such that the amount of
loans accounted for in accordance with
this SOP should be disclosed separately
in the notes to financial statements.’’
The agencies agree with this assessment
and have considered the disclosures
required by SOP 03–3. Therefore, to
assist the agencies in understanding the
relationship between the allowance for
loan and lease losses and the carrying
amount of the loan portfolios of those
banks whose portfolios include
purchased impaired loans, the agencies
are proposing to add three items to the
Call Report. All three of these items
represent information included in the
disclosures required by SOP 03–3. The
agencies would add two Memorandum
items to Schedule RC–C, part I, Loans
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12271
and Leases: (1) The outstanding
balance 1 and (2) the carrying amount
(before any loan loss allowances) as of
the report date of the purchased
impaired loans held for investment 2
that are included in Schedule RC–C. In
addition, the agencies would add a
Memorandum item to Schedule RI–B,
part II, Changes in Allowance for Loan
and Lease Losses, in which banks would
report the amount of loan loss
allowances for purchased impaired
loans held for investment that is
included in the total amount of the
allowance for loan and lease losses as of
the report date.
The agencies also plan to revise the
instructions to Schedule RC–N, Past
Due and Nonaccrual Loans, Leases, and
Other Assets, to explain how purchased
impaired loans should be reported in
this schedule. SOP 03–3 does not
prohibit placing loans on nonaccrual
status and any nonaccrual purchased
impaired loans should be reported
accordingly in Schedule RC–N. For
those purchased impaired loans that are
not on nonaccrual status, banks should
determine their delinquency status in
accordance with the contractual
repayment terms of the loans without
regard to the purchase price of (initial
investment in) these loans or the
amount and timing of the cash flows
expected at acquisition.
III. Request for Comment
Public comment is requested on all
aspects of this joint notice. In addition,
comments are invited on:
(a) Whether the proposed revisions to
the Call Report collections of
information are necessary for the proper
performance of the agencies’ functions,
including whether the information has
practical utility;
(b) The accuracy of the agencies’
estimates of the burden of the
information collections as they are
proposed to be revised, including the
validity of the methodology and
assumptions used;
1 The outstanding balance is the undiscounted
sum of all amounts, including amounts deemed
principal, interest, fees, penalties, and other under
the loan, owed to the bank at the report date,
whether or not currently due and whether or not
any such amounts have been charged off by the
bank. The outstanding balance does not include
amounts that would be accrued under the contract
as interest, fees, penalties, and other after the report
date.
2 Loans held for investment are those loans that
the bank has the intent and ability to hold for the
foreseeable future or until maturity or payoff. Thus,
the outstanding balance and carrying amount of any
purchased impaired loans that are held for sale
would not be reported in these proposed
Memorandum items.
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(c) Ways to enhance the quality,
utility, and clarity of the information to
be collected;
(d) Ways to minimize the burden of
information collections on respondents,
including through the use of automated
collection techniques or other forms of
information technology; and
(e) Estimates of capital or start up
costs and costs of operation,
maintenance, and purchase of services
to provide information.
Comments submitted in response to
this joint notice will be shared among
the agencies and will be summarized or
included in the agencies’ requests for
OMB approval. All comments will
become a matter of public record.
Written comments should address the
accuracy of the burden estimates and
ways to minimize burden as well as
other relevant aspects of the information
collection request.
Stuart E. Feldstein,
Assistant Director, Legislative and Regulatory
Activities Division, Office of the Comptroller
of the Currency.
Board of Governors of the Federal Reserve
System, February 28, 2005.
Jennifer J. Johnson,
Secretary of the Board.
Dated at Washington, DC, this 3rd day of
March, 2005.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 05–4664 Filed 3–10–05; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Proposed Collection; Comment
Request for Form 1028
Internal Revenue Service (IRS),
Treasury.
AGENCY:
Notice and request for
comments.
ACTION:
SUMMARY: The Department of the
Treasury, as part of its continuing effort
to reduce paperwork and respondent
burden, invites the general public and
other Federal agencies to take this
opportunity to comment on proposed
and/or continuing information
collections, as required by the
Paperwork Reduction Act of 1995, Pub.
L. 104–13 (44 U.S.C. 3506(c)(2)(A)).
Currently, the IRS is soliciting
comments concerning Form 1028,
Application for Recognition of
Exemption Under Section 521 of the
Internal Revenue Code.
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Written comments should be
received on or before May 10, 2005 to
be assured of consideration.
ADDRESSES: Direct all written comments
to Glenn P. Kirkland, Internal Revenue
Service, room 6516, 1111 Constitution
Avenue NW., Washington, DC 20224.
FOR FURTHER INFORMATION CONTACT:
Requests for additional information or
copies of the form and instructions
should be directed to R. Joseph Durbala
at the Internal Revenue Service, room
6516, 1111 Constitution Avenue NW.,
Washington, DC 20224, or at (202) 622–
3634, or through the Internet at
RJoseph.Durbala@irs.gov.
DATES:
SUPPLEMENTARY INFORMATION:
Title: Application for Recognition of
Exemption Under Section 521 of the
Internal Revenue Code.
OMB Number: 1545–0058.
Form Number: 1028.
Abstract: Farmers’ cooperatives must
file Form 1028 to apply for exemption
from Federal income tax as being
organizations described in Internal
Revenue Code section 521. The
information on Form 1028 provides the
basis for determining whether the
applicants are exempt.
Current Actions: There are no changes
being made to the form at this time.
Type of Review: Extension of a
currently approved collection.
Affected Public: Business or other forprofit organizations.
Estimated Number of Respondents:
50.
Estimated Time Per Respondent: 50
hours, 54 minutes.
Estimated Total Annual Burden
Hours: 2,545.
The following paragraph applies to all
of the collections of information covered
by this notice:
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection of information
displays a valid OMB control number.
Books or records relating to a collection
of information must be retained as long
as their contents may become material
in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential,
as required by 26 U.S.C. 6103.
Request for Comments: Comments
submitted in response to this notice will
be summarized and/or included in the
request for OMB approval. All
comments will become a matter of
public record. Comments are invited on:
(a) Whether the collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information shall have practical utility;
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(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information to be collected; (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology; and (e) estimates of capital
or start-up costs and costs of operation,
maintenance, and purchase of services
to provide information.
Approved: March 7, 2005.
Glenn P. Kirkland,
IRS Reports Clearance Officer.
[FR Doc. 05–4884 Filed 3–10–05; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Open Meeting of the Area 1 Taxpayer
Advocacy Panel (Including the States
of New York, Connecticut,
Massachusetts, Rhode Island, New
Hampshire, Vermont and Maine)
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice.
AGENCY:
SUMMARY: An open meeting of the Area
1 Taxpayer Advocacy Panel will be
conducted (via teleconference). The
Taxpayer Advocacy Panel is soliciting
public comments, ideas and suggestions
on improving customer service at the
Internal Revenue Service.
DATES: The meeting will be held
Wednesday, April 6, 2005.
FOR FURTHER INFORMATION CONTACT:
Marisa Knispel at 1–888–912–1227 (tollfree), or 718–488–3557 (non toll-free).
SUPPLEMENTARY INFORMATION: An open
meeting of the Area 1 Taxpayer
Advocacy Panel will be held
Wednesday, April 6, 2005 from 3 p.m.
ET to 4 p.m. ET via a telephone
conference call. Individual comments
will be limited to 5 minutes. If you
would like to have the TAP consider a
written statement, please call 1–888–
912–1227 or 718–488–3557, or write
Marisa Knispel, TAP Office, 10
MetroTech Center, 625 Fulton Street,
Brooklyn, NY 11201. Due to limited
conference lines, notification of intent
to participate in the telephone
conference call meeting must be made
with Marisa Knispel. Ms. Knispel can be
reached at 1–888–912–1227 or 718–
488–3557, or post comments to the Web
site: https://www.improveirs.org.
The agenda will include various IRS
issues.
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]]>Agencies
[Federal Register Volume 70, Number 47 (Friday, March 11, 2005)]
[Notices]
[Pages 12269-12272]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-4664]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE CORPORATION
Proposed Agency Information Collection Activities; Comment
Request
AGENCIES: Office of the Comptroller of the Currency (OCC), Treasury;
Board of Governors of the Federal Reserve System (Board); and Federal
Deposit Insurance Corporation (FDIC).
ACTION: Joint notice and request for comment.
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SUMMARY: In accordance with the requirements of the Paperwork Reduction
Act of 1995 (44 U.S.C. chapter 35), the OCC, the Board, and the FDIC
(the ``agencies'') may not conduct or sponsor, and the respondent is
not required to respond to, an information collection unless it
displays a currently valid Office of Management and Budget (OMB)
control number. The Federal Financial Institutions Examination Council
(FFIEC), of which the agencies are members, has approved the agencies'
publication for public comment of proposed revisions to the
Consolidated Reports of Condition and Income (Call Report), which are
currently approved collections of information. At the end of the
comment period, the comments and recommendations received will be
analyzed to determine the extent to which the FFIEC and the agencies
should modify the proposed revisions prior to giving final approval.
The agencies will then submit the revisions to OMB for review and
approval.
DATES: Comments must be submitted on or before May 10, 2005.
ADDRESSES: Interested parties are invited to submit written comments to
any or all of the agencies. All comments, which should refer to the OMB
control number(s), will be shared among the agencies.
OCC: You may submit comments, identified by [Attention: 1557-0081],
by any of the following methods:
E-mail: regs.comments@occ.treas.gov. Include [Attention:
1557-0081] in the subject line of the message.
Fax: (202) 874-4448.
Mail: Public Information Room, Office of the Comptroller
of the Currency, 250 E Street, SW., Mailstop 1-5, Washington, DC 20219;
Attention: 1557-0081.
Public Inspection: You may inspect and photocopy comments at the
Public Information Room. You can make an appointment to inspect the
comments by calling (202) 874-5043.
Board: You may submit comments, which should refer to
``Consolidated Reports of Condition and Income, 7100-0036,'' by any of
the following methods:
Agency Web Site: https://www.federalreserve.gov. Follow the
instructions for submitting comments on the https://
www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
E-mail: regs.comments@federalreserve.gov.
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Include docket number in the subject line of the message.
FAX: 202-452-3819 or 202-452-3102.
Mail: Jennifer J. Johnson, Secretary, Board of Governors
of the Federal Reserve System, 20th Street and Constitution Avenue,
NW., Washington, DC 20551.
All public comments are available from the Board's Web site at
https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as
submitted, except as necessary for technical reasons. Accordingly, your
comments will not be edited to remove any identifying or contact
information. Public comments may also be viewed electronically or in
paper in Room MP-500 of the Board's Martin Building (20th and C
Streets, NW.) between 9 a.m. and 5 p.m. on weekdays.
FDIC: You may submit comments, which should refer to ``Consolidated
Reports of Condition and Income, 3064-0052,'' by any of the following
methods:
https://www.FDIC.gov/regulations/laws/federal/propose.html.
E-mail: comments@FDIC.gov. Include ``Consolidated Reports
of Condition and Income, 3064-0052'' in the subject line of the
message.
Mail: Steven F. Hanft (202-898-3907), Paperwork Clearance
Officer, Room MB-3064, Federal Deposit Insurance Corporation, 550 17th
Street, NW., Washington, DC 20429.
Hand Delivery: Comments may be hand delivered to the guard
station at the rear of the 550 17th Street Building (located on F
Street) on business days between 7 a.m. and 5 p.m.
Public Inspection: You may inspect comments at the FDIC Public
Information Center, Room 100, 801 17th Street, NW., between 9 a.m. and
4:30 p.m. on business days.
A copy of the comments may also be submitted to the OMB desk
officer for the agencies: Mark Menchik, Office of Information and
Regulatory Affairs, Office of Management and Budget, New Executive
Office Building, Room 10235, Washington, DC 20503, or electronic mail
to mmenchik@omb.eop.gov.
FOR FURTHER INFORMATION CONTACT: For further information about the
revisions discussed in this notice, please contact any of the agency
clearance officers whose names appear below. In addition, copies of
Call Report forms can be obtained at the FFIEC's Web site (https://
www.ffiec.gov/ffiec_report_forms.htm).
OCC: Mary Gottlieb, OCC Clearance Officer, or Camille Dixon, (202)
874-5090, Legislative and Regulatory Activities Division, Office of the
Comptroller of the Currency, 250 E Street, SW., Washington, DC 20219.
Board: Michelle E. Long, Clearance Officer, (202) 452-3829,
Division of Research and Statistics, Board of Governors of the Federal
Reserve System, 20th and C Streets, NW., Washington, DC 20551.
Telecommunications Device for the Deaf (TDD) users may call (202) 263-
4869.
FDIC: Steven F. Hanft, Paperwork Clearance Officer, (202) 898-3907,
Legal Division, Federal Deposit Insurance Corporation, 550 17th Street,
NW., Washington, DC 20429.
SUPPLEMENTARY INFORMATION: The agencies are proposing to revise the
Call Report, which is currently an approved collection of information
for each of the agencies.
The effect of the proposed revisions to the reporting requirements
will vary from institution to institution depending on the extent to
which an institution acquires loans with evidence of deterioration of
credit quality since origination, including acquisitions of such loans
in business combinations accounted for using the purchase method. The
agencies expect that the proposed revisions will generally apply only
to the limited number of institutions that are involved in purchase
business combinations or that engage in purchases of loans with credit
quality problems as a business activity. Furthermore, the proposed
revisions entail the reporting of information included in disclosures
required under applicable generally accepted accounting principles.
Therefore, the agencies estimate that the implementation of these
reporting revisions will result in a nominal increase in the current
reporting burden imposed on all banks by the Call Report. The following
burden estimates include the proposed revisions.
Report Title: Consolidated Reports of Condition and Income (Call
Report).
Form Number: FFIEC 031 (for banks with domestic and foreign
offices) and FFIEC 041 (for banks with domestic offices only).
Frequency of Response: Quarterly.
Affected Public: Business or other for-profit.
OCC:
OMB Number: 1557-0081.
Estimated Number of Respondents: 2,000 national banks.
Estimated Time per Response: 46.43 burden hours.
Estimated Total Annual Burden: 371,403 burden hours.
Board:
OMB Number: 7100-0036.
Estimated Number of Respondents: 922 state member banks.
Estimated Time per Response: 52.38 burden hours.
Estimated Total Annual Burden: 193,177 burden hours.
FDIC:
OMB Number: 3064-0052.
Estimated Number of Respondents: 5,332 insured state nonmember
banks.
Estimated Time per Response: 37.08 burden hours.
Estimated Total Annual Burden: 790,796 burden hours.
The estimated time per response for the Call Report is an average,
which varies by agency because of differences in the composition of the
institutions under each agency's supervision (e.g., size distribution
of institutions, types of activities in which they are engaged, and
existence of foreign offices). For the Call Report, the average
reporting burden includes the effect on burden of the new Central Data
Repository (CDR) system for processing Call Reports. The time per
response for the Call Report is estimated to range from 15 to 600
hours, depending on an individual institution's circumstances, before
considering the effect of voluntary testing and global enrollment
activities related to the CDR. The reporting burden for testing and
enrollment activities for an individual institution is estimated to
range from 16 to 69 hours, depending on the institution's level of
participation.
General Description of Reports
These information collections are mandatory: 12 U.S.C. 161 (for
national banks), 12 U.S.C. 324 (for state member banks), and 12 U.S.C.
1817 (for insured state nonmember commercial and savings banks). Except
for selected items, these information collections are not given
confidential treatment.
Abstract
Institutions file Call Reports with the agencies each quarter for
the agencies' use in monitoring the condition, performance, and risk
profile of individual institutions and the industry as a whole. In
addition, Call Reports provide the most current statistical data
available for evaluating institutions' corporate applications such as
mergers, for identifying areas of focus for both on-site and off-site
examinations, and for monetary and other public policy purposes. Call
Reports are also used to calculate all institutions' deposit insurance
and Financing Corporation assessments and national banks' semiannual
assessment fees.
Current Action
I. Overview
This joint notice and request for comment addresses proposed
revisions
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to the Call Report in response to Statement of Position 03-3,
Accounting for Certain Loans or Debt Securities Acquired in a Transfer
(SOP 03-3), which was issued by the American Institute of Certified
Public Accountants (AICPA) and is effective for loans acquired in
fiscal years beginning after December 15, 2004. The agencies are
proposing to add three items to the Call Report relating to loans
within the scope of SOP 03-3. In addition, the agencies are revising
the Call Report instructions to explain how the delinquency status of
loans within the scope of SOP 03-3 should be determined for purposes of
disclosing past due loans in the Call Report.
The proposed revisions to the Call Report have been approved for
publication by the FFIEC. The agencies intend to implement the proposed
Call Report changes as of the June 30, 2005, report date. Nonetheless,
as is customary for Call Report changes, if the information required to
be reported in accordance with the proposed reporting revisions is not
readily available, institutions are advised that they may report
reasonable estimates of this information for the report date as of
which the proposed changes first take effect.
Type of Review: Revision of currently approved collections.
II. Discussion of Proposed Revisions
In December 2003, the AICPA issued SOP 03-3. In general, this
Statement of Position applies to ``purchased impaired loans,'' i.e.,
loans that a bank has purchased, including those acquired in a purchase
business combination, when there is evidence of deterioration of credit
quality since the origination of the loan and it is probable, at the
purchase date, that the bank will be unable to collect all
contractually required payments receivable. The Statement of Position
applies to loans acquired in fiscal years beginning after December 15,
2004, with early adoption permitted. Banks must follow SOP 03-3 for
Call Report purposes in accordance with its effective date based on
their fiscal years. The Statement of Position does not apply to the
loans that a bank has originated. SOP 03-3 also excludes certain
acquired loans from its scope.
Under SOP 03-3, a purchased impaired loan is initially recorded at
its purchase price (in a purchase business combination, the present
value of amounts to be received). The Statement of Position limits the
yield that may be accreted on the loan (the accretable yield) to the
excess of the bank's estimate of the undiscounted principal, interest,
and other cash flows expected at acquisition to be collected on the
loan over the bank's initial investment in the loan. The excess of
contractually required cash flows over the cash flows expected to be
collected on the loan, which is referred to as the nonaccretable
difference, must not be recognized as an adjustment of yield, loss
accrual, or valuation allowance. Neither the accretable yield nor the
nonaccretable difference may be shown on the balance sheet. After
acquisition, increases in the cash flows expected to be collected
generally should be recognized prospectively as an adjustment of the
loan's yield over its remaining life. Decreases in cash flows expected
to be collected should be recognized as an impairment through an
addition to the loan loss allowance.
The Statement of Position prohibits a bank from ``carrying over''
or creating valuation allowances (loan loss allowances) in the initial
accounting for purchased impaired loans. This prohibition applies to
the purchase of an individual impaired loan, a pool or group of
impaired loans, and impaired loans acquired in a purchase business
combination. As a consequence, SOP 03-3 provides that valuation
allowances should reflect only those losses incurred after acquisition,
that is, the present value of all cash flows expected at acquisition
that ultimately are not to be received. Thus, because of the accounting
model set forth in SOP 03-3, banks will need to segregate their
purchased impaired loans, if any, from the remainder of their loan
portfolio for purposes of determining their overall allowance for loan
and lease losses.
According to the Basis for Conclusions of SOP 03-3, the AICPA's
Accounting Standards Executive Committee ``believes that the accounting
for acquired loans within the scope of this SOP is sufficiently
different from the accounting for originated loans, particularly with
respect to provisions for impairment, such that the amount of loans
accounted for in accordance with this SOP should be disclosed
separately in the notes to financial statements.'' The agencies agree
with this assessment and have considered the disclosures required by
SOP 03-3. Therefore, to assist the agencies in understanding the
relationship between the allowance for loan and lease losses and the
carrying amount of the loan portfolios of those banks whose portfolios
include purchased impaired loans, the agencies are proposing to add
three items to the Call Report. All three of these items represent
information included in the disclosures required by SOP 03-3. The
agencies would add two Memorandum items to Schedule RC-C, part I, Loans
and Leases: (1) The outstanding balance \1\ and (2) the carrying amount
(before any loan loss allowances) as of the report date of the
purchased impaired loans held for investment \2\ that are included in
Schedule RC-C. In addition, the agencies would add a Memorandum item to
Schedule RI-B, part II, Changes in Allowance for Loan and Lease Losses,
in which banks would report the amount of loan loss allowances for
purchased impaired loans held for investment that is included in the
total amount of the allowance for loan and lease losses as of the
report date.
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\1\ The outstanding balance is the undiscounted sum of all
amounts, including amounts deemed principal, interest, fees,
penalties, and other under the loan, owed to the bank at the report
date, whether or not currently due and whether or not any such
amounts have been charged off by the bank. The outstanding balance
does not include amounts that would be accrued under the contract as
interest, fees, penalties, and other after the report date.
\2\ Loans held for investment are those loans that the bank has
the intent and ability to hold for the foreseeable future or until
maturity or payoff. Thus, the outstanding balance and carrying
amount of any purchased impaired loans that are held for sale would
not be reported in these proposed Memorandum items.
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The agencies also plan to revise the instructions to Schedule RC-N,
Past Due and Nonaccrual Loans, Leases, and Other Assets, to explain how
purchased impaired loans should be reported in this schedule. SOP 03-3
does not prohibit placing loans on nonaccrual status and any nonaccrual
purchased impaired loans should be reported accordingly in Schedule RC-
N. For those purchased impaired loans that are not on nonaccrual
status, banks should determine their delinquency status in accordance
with the contractual repayment terms of the loans without regard to the
purchase price of (initial investment in) these loans or the amount and
timing of the cash flows expected at acquisition.
III. Request for Comment
Public comment is requested on all aspects of this joint notice. In
addition, comments are invited on:
(a) Whether the proposed revisions to the Call Report collections
of information are necessary for the proper performance of the
agencies' functions, including whether the information has practical
utility;
(b) The accuracy of the agencies' estimates of the burden of the
information collections as they are proposed to be revised, including
the validity of the methodology and assumptions used;
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(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the burden of information collections on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
(e) Estimates of capital or start up costs and costs of operation,
maintenance, and purchase of services to provide information.
Comments submitted in response to this joint notice will be shared
among the agencies and will be summarized or included in the agencies'
requests for OMB approval. All comments will become a matter of public
record. Written comments should address the accuracy of the burden
estimates and ways to minimize burden as well as other relevant aspects
of the information collection request.
Stuart E. Feldstein,
Assistant Director, Legislative and Regulatory Activities Division,
Office of the Comptroller of the Currency.
Board of Governors of the Federal Reserve System, February 28,
2005.
Jennifer J. Johnson,
Secretary of the Board.
Dated at Washington, DC, this 3rd day of March, 2005.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 05-4664 Filed 3-10-05; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P
