[Federal Register Volume 65, Number 41 (Wednesday, March 1, 2000)]
[Notices]
[Pages 11064-11065]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-4937]


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GENERAL ACCOUNTING OFFICE


Federal Accounting Standards Advisory Board

AGENCY: General Accounting Office.

ACTION: Notice of Proposed Statement of Federal Financial Accounting 
Standards (SFFAS) No. 18, Amendments to Accounting Standards for Direct 
Loans and Loan Guarantees.

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    Board Action: Pursuant to the Federal Advisory Committee Act (Pub. 
L. 92-463), as amended, and the FASAB Rules of Procedure, as amended in 
October, 1999 notice is hereby given that the Federal Accounting 
Standards Advisory Board on February 18, 2000, submitted to its 
principals for review for a period of 90 days a proposed Statement of 
Federal Financial Accounting Standards (SFFAS) No. 18, Amendments to 
Accounting Standards for Direct Loans and Loan Guarantees. If there is 
no objection from any of the principals, SFFAS No. 18 will be issued as 
a final FASAB statement as of May 19, 2000.
    A summary of the proposed Statement follows:
    SFFAS No. 18 amends SFFAS No. 2, Accounting for Direct Loans and 
Loan Guarantees, issued in August 1993, by adding several new 
requirements. The objectives of these amendments are to improve 
financial reporting for subsidy costs and performance of Federal credit 
programs. The new reporting requirements are:
     Report subsidy reestimates in two distinct components: the 
interest rate reestimate and the technical/default reestimate. The 
former is a reestimate due to a change in interest rates from the rate 
assumed in budget preparation and used in calculating the subsidy 
expense to the rates that are prevailing at the time the direct or 
guaranteed loans are disbursed. The latter is a reestimate due to 
changes made in projected cash flows under the terms of the direct 
loans or loan guarantees after reevaluating all the risk factors as of 
the financial statement date, except for the effect of interest rate 
reestimates.
     Display a reconciliation between the beginning and the 
ending balances of the subsidy cost allowance for direct loans and the 
liability for loan guarantees, reported in an entity's balance sheet. 
The reconciliation displays activities that affect the subsidy cost 
allowance or the loan guarantee liability. such as the subsidy expense 
for direct or guaranteed loans disbursed during the reporting period, 
subsidy reestimates, fees received, interest supplements paid, loans 
written off, claim payments made to lenders,

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recoveries obtained, and other adjustments.
     Provide a description of program characteristics and 
disclose: (1) The amounts of direct or guaranteed loans disbursed in 
each program during reporting year, (ii) the estimated subsidy rates 
for the total subsidy and the subsidy components at the program level 
in the current year's budget for the current year's cohorts, (iii) 
events and changes in economic conditions, other risk factors, 
legislation, credit policies, and subsidy estimation methodologies and 
assumptions, that have had a significant and measurable effect on 
subsidy rates, subsidy expense, and subsidy reestimates, and (iv) 
events and changes in conditions that have occurred and are more likely 
than not to have a significant impact but the effects of which are not 
measurable at the reporting date. Reporting entities should discuss how 
those events and changes have affected or would affect credit programs' 
subsidy costs, subsidy reestimates, and the subsidy rates estimated in 
the budget.
    The amendments, if finally issued, will be effective for periods 
beginning after September 30, 2000

FOR FURTHER INFORMATION CONTACT: Wendy Comes, Executive Director, 441 G 
St., N.W., Room 6814, Washington, D.C. 20548, or call (202) 512-7350.

    Authority: Federal Advisory Committee Act. Pub. L. 92-463.

    Dated: February 25, 2000.
Wendy M. Comes,
Executive Director.
[FR Doc. 00-4937 Filed 2-29-00; 8:45 am]
BILLING CODE 1610-01-M