To All Depository Institutions and Others Concerned in the Second Federal Reserve District:
The Federal Reserve Board, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision have issued an "Interagency Advisory on the Accounting Treatment of Accrued Interest Receivable Related to Credit Card Securitizations."
The purpose of this guidance, contained in a supervisory letter (SR 02-22) dated December 4, 2002, is to clarify the appropriate accounting treatment for financial institutions that securitize credit card receivables and record an asset commonly referred to as Accrued Interest Receivable (AIR). The agencies consulted with the staffs of the Securities and Exchange Commission and Financial Accounting Standards Board in developing this guidance.
The interagency advisory is attached.
Questions on this matter may be directed at this Bank to Dianne Dobbeck, Staff Director, Policy and Analysis Function.