Credit Reform Accounting

Updated August 10, 2004

This reference material is provided to assist credit agencies in complying with the Credit Reform Act of 1990 (P.L. 101-508).

Overview

The Federal Credit Reform Act of 1990 was enacted to accomplish four objectives:

• measure more accurately the costs of Federal credit programs;
• place the cost of credit programs on a budgetary basis equivalent to other Federal spending;
• encourage the delivery of benefits in the form most appropriate to the needs of beneficiaries; and
• improve the allocation of resources among credit programs and between credit and other spending programs.

Standard USSGL Transactions

• Credit Reform Case Studies
  The case studies illustrate accounting for direct and guaranteed loans at the net present value of their cash flows for transactions occurring after 1991. A case study is also available for loans prior to 1992 using the cash basis of accounting.
  
  
• Issue Papers 
  The issue papers provide a review of individual credit issues that require modification. Issue papers are not authoritative guidance. They are discussed and endorsed by the AAPC Credit Reform Task Force.

Working Groups

• Accounting and Auditing Policy Committee (AAPC)
  Credit Reform Task Force 
• Federal Accounting Standards Advisory Board (FASAB).