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Intro and Line Item 1 - Coggle Diagram
Intro and Line Item 1
Contents
All income and expense
Adjustments of accruals and other acc estimates made shortly after the end of reporting period
Pre-opening income and expense
From commencement until date of operation
Method 2
Assets and liabilities accounted under the fair value option
FV Option
Report certain assets and liabilities at FV, with changes in FV in earnings
If elected, the interest income and expense on financial assets/liabilities should be reported on Sch HI, not as part of the reported changes in FV
The interest income and expense should be measured using either:
Contractual interest rate on the asset and liability
1 more item...
Effective yield method based on the amount when the asset/liability was first recognised
Particular method required by GAAP
Beneficial interest in srutinized financial assets
Interest income should be measured in accordance with the consensus in this issue
Acquired loan or debt security, interest income should be measured in accordance with subtopic, regardless of whether or not management has determined the asset to be purchased credit deteriorated (PCD)
Revaluation adj to the CA of assets and liabilities
Sch HC
Resulting from the periodic marking of such assets and liabilities to FV should be reported as 'Other noninterest income'
Sch HI-A (Item 12) - OCI
The portion of the total change in the FV of a liability resulting from a change in the instrument-specific credit risk
Method 1
Business combinations
Accounted for under acquisition method
Report the income and expense only after the acquisition
Transactions between entities under common control
Accounted for in a manner similar to a pooling of interest
Report income and expense of the combined entities for the entire calendar year to date as though they had combined at the beginning of the year
Line item 1 (Interest income)
What should be included?
Interest
Include
Interest on all assets reportable as loans extended directly (ie the reporting entity itself originated), purchased from others, sold under agreements to repurchased, or pledged as collateral
Loan origination fees, direct loan origination costs, and purchase premiums and discounts on loans held for investment
Loan commitment fees
Investigation and service charge, fees representing reimbursement of loan processing costs, renewal and pas due charges, prepayment penalties, fees charged for execution of mortgages or agreement securing the HC's loan
Charges levied against overdrawn acc
The contractual amount of interest income earned on loans that are reported at FV under FV option
Exclude
Fees for servicing RE mortgages or other loans that are not assets of the HC
Charges to merchants for HC's handling of credit card or charge sales when the HC does not carry the related loan acc on its books
Pls refer to the instruction
Fees
Similar charges levied against or associated with all assets reportable as loans in Sch HC-C, Item 1-9
What should be excluded?
Interest rebated to customers on loans paid before maturity from gross interest earned on loans
This should not be reported as expense
Category
1(a)
1(a)(1)
Interest and fee income on loans in domestic offices
1(a)(1)(a)
Interest and fee income on loans secured by 1-4 family residential properties
Completed house
1(a)(1)(b)
Interest and fee income on all other loans secured by real estate
House under construction
1(a)(1)(c)
Interest and fee income on all other loans
Other than (a) and (b)
1(a)(2)
Interest and fee income on loans in foreign offices, Edge ad Agreement subsidiaries, and IBFs
1(b)
Income from lease financing receivables
Include
Income from direct financing and sales-type leases
Leveraged leases
Exclude
Any investment tax credit associated with leased property
Provisions for credit losses on leases
Rental fees applicable to operating leases for furniture and equipment rented to others
1(c)
Interest income on balances due from depository institutions
Include
Interest-bearing balances maintained to satisfy reserve balance requirements
Excess balances
Term deposits due from FRB
Interest-bearing balances due from depository institutions that are reported at FV under FV option
1(d)
Interest and dividend income
Include
Interest income on debt securities
Prepayment penalties received on debt securities
Dividend income on equity securities with readily determinable FV not held for trading
Interest and dividend on debt securities held in the consolidated holding company's HTM and AFS portfolios
Dividends on equity securities with readily determinable FV not held for trading, even if securities have been lent, sold under agreements to repurchased that are treated as borrowings, or pledged as collateral for any purpose
Interest received at the sale of debt securities to the extent that such interest had not already been accrued on the consolidated holding Co's books
Accrued interest included in the purchase price of debt securities from income on securities
Income from detached US Government securities coupons and ex-coupon US Government securities not held for trading in item 1(d)(3) as interest and dividend income on "All other securities"
Exclude
Deduct current amortization of premium on debt securities
Realised gains/losses on HTM securities and on AFS debt securities
Net unrealised holding gains/losses on AFS debt securities
The YTD change in net realised and unrealised gains/losses, and any realised gains/losses on equity securities with readily determinable FV not held for trading
Income from advances to, or obligations of, majority owned subsi not consol, associated companies, and those corporate JV over which the consol HC exercised significant influence
Category
I(d)(1)
US Treasury securities and US Government agency obligations (exc mortgage-backed securities)
1(d)(2)
Mortgage-backed securities
1(d)(3)
Include
All other securities
Income from all other debt and equity securities of companies domiciled in the US
Exclude
Income from equity securities that do not have readily determinable FV
Consolidated HC's proportionate share of net income/loss from its common stock investments in domestic unconsolidated subsi, associated companies, and those corporate JV
1(e)
Interest income on trading assets
Note
To be completed by HC with at least $5 billion in total assets
HC that have total assets below $5 billion should report interest income from trading assets in 1(g) Other interest income
Include
Accretion of discount on assets held in trading accounts that have been issued on a discount basis eg US Treasury bills and commercial paper
Exclude
Gains/losses and fees from trading assets
Revaluation adjustments from the periodic marking to market of derivative contract held for trading purpose
1(f)
Interest income on federal funds sold and securities purchased under agreements to resell
Include
Contractual amount of interest income earned on fed funds sold and securities purchased under agreemet to resell that are reported at FV under FV option
1(g) Other interest income
Include
Interest income from advances to, or obligations of, majority owned subsi not consol on this report, associated co, those corporate JV
Interest income on real estate sales contracts
Other than above line items
Exclude
Consol HC co's proportionate share of income/loss before discontinued operations from its common stock investments in unconsolidated subsi, associated co, corporate JV
Interest received on other assets not specified above
Interest income on receivables from foreclosures on fully or partially government-guaranteed mortgage loans
HC with less than $5 billion in assets