[Federal Register Volume 78, Number 68 (Tuesday, April 9, 2013)]
[Rules and Regulations]
[Pages 21035-21037]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-08140]


=======================================================================
-----------------------------------------------------------------------

FARM CREDIT ADMINISTRATION

12 CFR Parts 615, 621, and 652

RIN 3052-AC75


Funding and Fiscal Affairs, Loan Policies and Operations, and 
Funding Operations; Accounting and Reporting Requirements; Federal 
Agricultural Mortgage Corporation Funding and Fiscal Affairs; GAAP 
References and Other Conforming Amendments

AGENCY: Farm Credit Administration.

ACTION: Direct final rule.

-----------------------------------------------------------------------

SUMMARY: The Farm Credit Administration (FCA, Agency, or our) is 
adopting technical amendments to various regulations to conform certain 
references to accounting standards in these rules to the Financial 
Accounting Standards Board (FASB) Accounting Standards 
Codification[supreg].

DATES: The regulation shall become effective upon the expiration of 30 
days after publication in the Federal Register during which either or 
both Houses of Congress are in session. We will publish notice of the 
effective date in the Federal Register.

FOR FURTHER INFORMATION CONTACT: 
Michael T. Wilson, Policy Analyst, Office of Regulatory Policy, Farm 
Credit Administration, McLean, VA 22102-5090, (703) 883-4124, TTY (703) 
883-4056,

or

Jeff Pienta, Senior Attorney, Office of General Counsel, Farm Credit 
Administration, McLean, VA 22102-5090, (703) 883-4431, TTY (703) 883-
4020.

SUPPLEMENTARY INFORMATION:

I. Objective

    The objective of this direct final rule is to carry out the FCA 
Board's commitment to the principles contained in the Board's Policy 
Statement on Regulatory Philosophy,\1\ which includes the elimination 
of outdated regulations and technical amendments to ensure that 
regulations are accurate. In furtherance of this objective, the Agency 
is making a number of technical changes to amend the current 
regulations in parts 615, 621 and 652 to conform certain references in 
these rules to the FASB Accounting Standards Codification.
---------------------------------------------------------------------------

    \1\ See 70 FR 71142, November 25, 2005.
---------------------------------------------------------------------------

II. Background

    On June 30, 2009, the FASB issued Statement of Financial Accounting 
Standards No. 168, ``The Financial Accounting Standards Board 
Accounting Standards CodificationTM and the Hierarchy of 
Generally Accepted Accounting Principles--a replacement of FASB 
Statement No. 162'' (SFAS 168), which established the Accounting 
Standards Codification as the source of authoritative accounting 
principles recognized by the FASB to be applied in the preparation of 
financial statements in conformity with U.S. generally accepted 
accounting principles (GAAP). The Accounting Standards Codification 
restructured the numerous existing U.S. accounting and reporting 
standards and literature issued by the FASB and other related private-
sector standard setters into a single source of authoritative 
literature. With the issuance of SFAS 168, all guidance contained in 
the Accounting Standards Codification carries equal authority, and 
accounting literature not included in the Accounting Standards 
Codification will be considered non-authoritative. Also, the issuance 
of SFAS 168 was not intended to, and did not, change current GAAP. The 
Accounting Standards Codification is effective for interim and

[[Page 21036]]

annual periods ending after September 15, 2009.

III. Discussion

    The issuance of the Accounting Standards Codification affects 
existing references in certain FCA regulations, bookletters and other 
forms of Agency guidance that refer to specific FASB standards and 
literature of other related private-sector standard setters, because 
these references are now superseded by the Accounting Standards 
Codification. For this reason, on September 3, 2009, the FCA issued an 
Informational Memorandum \2\ to clarify that, concurrent with the 
issuance of SFAS 168, references in FCA regulations, bookletters and 
other guidance to specific standards under GAAP should be understood to 
mean the corresponding reference in the Accounting Standards 
Codification as identified using the cross-reference finding tool 
included in the Accounting Standards Codification. The FCA stated in 
the Informational Memorandum that, as appropriate, it intended to 
initiate an effort to update the GAAP references. This direct final 
rule is a result of that initiative with respect to the FCA's 
regulations.
---------------------------------------------------------------------------

    \2\ See FCA Informational Memorandum, Financial Accounting 
Standards Board Accounting Standards Codification, dated September 
3, 2009.
---------------------------------------------------------------------------

    The amendments in this direct final rule result from a direct 
conversion of the prior GAAP reference to the corresponding reference 
in the Accounting Standards Codification. All of the amendments are 
technical in nature and none of the changes are intended to represent a 
substantive change in the underlying regulation.

IV. Certain Findings

    Under the Administrative Procedure Act, a notice of proposed 
rulemaking is not required when the Agency, for good cause, finds that 
notice and public comment are impracticable, unnecessary, or contrary 
to the public interest. These amendments are technical changes to 
eliminate obsolete terminology and revise reporting and disclosure 
requirements as necessary to achieve consistency between the Agency's 
compliance requirements and the FASB Accounting Standards Codification. 
It is unlikely that the public would have comments on such non-
substantive, technical amendments, and the Agency therefore finds that 
it is unnecessary to publish notice of these amendments.

V. Direct Final Rule

    We are amending regulations described in the text of amendments 
below by a direct final rulemaking. The Administrative Conference of 
the United States recommends direct final rulemaking for Federal 
agencies to enact noncontroversial regulations on an expedited basis, 
without the usual notice and comment period.\3\ This process enables us 
to reduce the time and resources we need to develop, review, and 
publish a direct final rule.
---------------------------------------------------------------------------

    \3\ Recommendation 95-4, referencing the Administrative 
Procedure Act ``good cause'' exemption at 5 U.S.C. 553(b)(B), 
adopted June 15, 1995.
---------------------------------------------------------------------------

    In a direct final rulemaking, we notify the public that the rule 
will become final on a specified date unless we receive a significant 
adverse comment during the comment period. A significant adverse 
comment is one where the commenter explains why the rule would be 
inappropriate (including challenges to its underlying premise or 
approach), ineffective, or unacceptable without a change. In general, a 
significant adverse comment would raise an issue serious enough to 
warrant a substantive response from the Agency in a notice-and-comment 
proceeding.
    We believe that a direct final rulemaking is the appropriate method 
for amending the regulations in Part I. above because the changes are 
technical in nature and do not substantively alter the rights or 
responsibilities of any party.

VI. Regulatory Flexibility Act

    Pursuant to section 605(b) of the Regulatory Flexibility Act (5 
U.S.C. 601 et seq.), the FCA hereby certifies that the direct final 
rule will not have a significant economic impact on a substantial 
number of small entities. Each of the banks in the System, considered 
together with its affiliated associations, has assets and annual income 
in excess of the amounts that would qualify them as small entities. 
Therefore, System institutions are not ``small entities'' as defined in 
the Regulatory Flexibility Act.

List of Subjects

12 CFR Part 615

    Accounting, Agriculture, Banks, banking, Government securities, 
Investments, Rural areas.

12 CFR Part 621

    Accounting, Agriculture, Banks, banking, Penalties, Reporting and 
recordkeeping requirements, rural areas.

12 CFR Part 652

    Agriculture, Banks, banking, Capital, Investments, Rural areas.
    For the reasons stated in the preamble, parts 615, 621 and 652 of 
chapter VI, title 12 of the Code of Federal Regulations are amended as 
follows:

PART 615--FUNDING AND FISCAL AFFAIRS, LOAN POLICIES AND OPERATIONS, 
AND FUNDING OPERATIONS

0
1. The authority citation for part 615 continues to read as follows:

    Authority: Secs. 1.5, 1.7, 1.10, 1.11, 1.12, 2.2, 2.3, 2.4, 2.5, 
2.12, 3.1, 3.7, 3.11, 3.25, 4.3, 4.3A, 4.9, 4.14B, 4.25, 5.9, 5.17, 
6.20, 6.26, 8.0, 8.3, 8.4, 8.6, 8.8, 8.10, 8.12 of the Farm Credit 
Act (12 U.S.C. 2013, 2015, 2018, 2019, 2020, 2073, 2074, 2075, 2076, 
2093, 2122, 2128, 2132, 2146, 2154, 2154a, 2160, 2202b, 2211, 2243, 
2252, 2278b, 2278b-6, 2279aa, 2279aa-3, 2279aa-4, 2279aa-6, 2279aa-
8, 2279aa-10, 2279aa-12); sec. 301(a) of Pub. L. 100-233, 101 Stat. 
1568, 1608.


Sec.  615.5207  [Amended]

0
2. Amend paragraph (j) by removing the phrase, ``covered by the 
definition of ``accumulated other comprehensive income'' contained in 
the Statement of Financial Accounting Standards No. 130, as promulgated 
by the Financial Accounting Standards Board'' and adding in its place, 
the phrase ``included in the component of equity referred to as 
``accumulated other comprehensive income'' (or similar term) as 
provided by Financial Accounting Standards Board Accounting Standards 
Codification 220, Comprehensive Income, and pursuant to Financial 
Accounting Standards Board Accounting Standards Codification 
subparagraph 220-10-45-14''.


Sec.  615.5301  [Amended]

0
3. Amend Sec.  615.5301 by:
0
a. Removing the phrase in paragraphs (b)(5) and (i)(5), ``covered by 
the definition of ``accumulated other comprehensive income'' contained 
in the Statement of Financial Accounting Standards No. 130, as 
promulgated by the Financial Accounting Standards Board'' and adding in 
its place, the phrase ``included in the component of equity referred to 
as ``accumulated other comprehensive income'' (or similar term) as 
provided by Financial Accounting Standards Board Accounting Standards 
Codification 220, Comprehensive Income, and pursuant to Financial 
Accounting Standards Board Accounting Standards Codification 
subparagraph 220-10-45-14''.
0
b. Removing the phrase in paragraph (j)(1) introductory text, ``As set 
forth in Statement of Financial Accounting Standards No. 133, 
Accounting for Derivative Instruments and Hedging Activities, as 
promulgated by the Financial Accounting Standards

[[Page 21037]]

Board--'' and adding in its place, the phrase ``As set forth in 
Financial Accounting Standards Board Accounting Standards Codification 
Topic 815, Derivatives and Hedging--''.

PART 621--ACCOUNTING AND REPORTING REQUIREMENTS

0
4. The authority citation for part 621 continues to read as follows:

    Authority: Secs. 5.17, 8.11 of the Farm Credit Act (12 U.S.C. 
2252, 2279aa-11); sec. 514 of Pub. L. 102-552.

Sec.  621.6  [Amended]

0
5. Amend paragraph (b) by removing the phrase, ``Statement of Financial 
Accounting Standards No. 15, Accounting by Debtors and Creditors for 
Troubled Debt Restructurings, as promulgated by the FASB'', and adding 
in its place, the phrase ``Financial Accounting Standards Board 
Accounting Standards Codification Subtopic 310--40, Receivables--
Troubled Debt Restructurings by Creditors''.

PART 652--FEDERAL AGRICULTURAL MORTGAGE CORPORATION FUNDING AND 
FISCAL AFFAIRS

0
6. The authority citation for part 652 continues to read as follows:

    Authority: Secs. 4.12, 5.9, 5.17, 8.11, 8.31, 8.32, 8.33, 8.34, 
8.35, 8.36, 8.37, 8.41 of the Farm Credit Act (12 U.S.C. 2183, 2243, 
2252, 2279aa-11, 2279bb, 2279bb-1, 2279bb-2, 2279bb-3, 2279bb-4, 
2279bb-5, 2279bb-6, 2279cc); sec. 514 of Pub. L. 102-552, 106 Stat. 
4102; sec. 118 of Pub. L. 104-105, 110 Stat. 168.


5.0  [Amended]

0
7. Amend paragraph b. of Appendix A by removing the phrase ``Financial 
Accounting Standards Board Interpretation No. 45 (FIN 45) Guarantor's 
Accounting and Disclosure Requirements for Guarantees, Including 
Indirect Guarantees of Indebtedness of Others'' and adding in its 
place, the phrase ``Financial Accounting Standards Board Accounting 
Standards Codification Topic 460, Guarantees''.

    Dated: April 3, 2013.
Dale L. Aultman,
Secretary, Farm Credit Administration Board.
[FR Doc. 2013-08140 Filed 4-8-13; 8:45 am]
BILLING CODE 6705-01-P