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Informational Memorandum
Subject:Advance Notice of Revisions to Call Report
Date of Memorandum:11/06/1997
Expiration Date:
Signed By:Olona, Orlando for R.Smith
FCA Contact Person:Donnelly, Robert
Contact Phone:703 883-4450
List of Attachments:Revisions


November 6, 1997

To: The Chief Executive Officer
All Farm Credit System Institutions

From: Roland E. Smith, Director /s/ JOlona for
Office of Examination

Subject: Memorandum of Advance Notice of Revisions to the Farm Credit Administration Call Report for the Quarter Ending March 31, 1998

The Farm Credit Administration (FCA or Agency) is providing this memorandum as an advance notice of revisions to the Call Report for the quarter ending March 31, 1998. This advance notice is being issued to assist your institution in preparing for the first quarter 1998 Call Report submission.

The revisions to the Call Report incorporate the recent adoption by the Financial Accounting Standards Board of Statement of Financial Accounting Standards (Statement or SFAS) No.130, Reporting Comprehensive Income. This Statement establishes new reporting requirements for general-purpose financial statements. Under SFAS No.130, transactions classified as compre-hensive income are to be either reported and displayed within the existing financial statements or presented in a separate financial statement. Accumulated income is to be reported as a separate component within the equity section of the balance sheet.

Adoption of SFAS No.130 is required for financial statements with fiscal years starting after December 31, 1997. As a result, most System institutions will be required to prepare their first quarter 1998 financial statements in conformance with the requirements of this Statement. Similarly, with an objective to minimize costs and ensure continued comparability with the financial statements prepared by System institutions, the Agency is incorporating the reporting requirements of this Statement with the March 31, 1998 Call Report.

An attachment to this memorandum provides both a brief summary of the revisions and a copy of the current schedules that show the changes to be incorporated with the first quarter 1998 Call Report. As you will note, the revisions incorporate one of the suggested reporting presentations contained in the appendix of the Statement. Since the Statement allows for several variations in reporting presentations, individual institutions may decide to use a different reporting presentation in the preparation of their published financial statements to stockholders.

Any questions regarding this memorandum or the Call Report revisions should be directed to Robert Donnelly, Accounting and Examination Policy Division, Office of Examination, at (703) 883-4450.