{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/505/942/#50-disclosure","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"505","topic_title":"Equity","subtopic":"505-942","subtopic_title":"Financial Services—Depository and Lending","section":{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":"Regulatory Capital Disclosures","paragraphs":[{"citation":"505-942-50-1","para":"50-1","html":"
Noncompliance with regulatory capital requirements could materially affect the economic resources of a bank or savings institution and claims to those resources. Accordingly, at a minimum, an entity shall disclose all of the following in the notes to the financial statements:
  1. a
    A description of regulatory capital requirements for both of the following:
    1. 1
      Those for capital adequacy purposes
    2. 2
      Those established by the prompt corrective action provisions of Section 38 of the Federal Deposit Insurance Act.
  2. b
    The actual or possible material effects of noncompliance with such requirements.
  3. c
    Whether the entity is in compliance with the regulatory capital requirements, including, as of each balance sheet date presented, both of the following with respect to quantitative measures:
    1. 1
      The entity's required and actual ratios and amounts of regulatory capital, which may include Common Equity Tier 1, Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, and (for savings institutions) tangible capital
    2. 2
      Factors that may significantly affect capital adequacy such as potentially volatile components of capital, qualitative factors, and regulatory mandates.
  4. d
    As of each balance sheet date presented, the prompt corrective action category in which the entity was classified as of its most recent notification.
  5. e
    As of the most recent balance sheet date, whether management believes any conditions or events since notification have changed the institution's category.
Noncompliance with regulatory capital requirements may, when considered with other factors, raise substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.
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Disclosures shall also be presented for any state-imposed capital requirements that are more stringent than or significantly different from federal requirements.
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For \"adequately capitalized\" or \"undercapitalized\" entities, the disclosure in paragraph 942-505-50-1(c) shall present the minimum amounts and ratios the institution must have to be categorized as adequately capitalized under the prompt corrective action framework and shall include the effect of any supervisory action that has been imposed. The amounts disclosed under that paragraph may be presented in either narrative or tabular form. The percentages disclosed shall be those applicable to the entity. Entities with CAMELS ratings of 1 that are not anticipating or experiencing significant growth and have well-diversified risk are required to maintain a minimum leverage ratio of 3.0 percent. An additional 100 to 200 basis points are required for all but these most highly rated entities. Also, if the institution has been advised that it must meet capital adequacy levels that exceed the statutory minimums, those higher levels shall be disclosed. Such institution-specific requirements also shall be the basis for management's assertion in paragraph 942-505-50-1(c) about whether the entity is in compliance.
","snippet":"For \"adequately capitalized\" or \"undercapitalized\" entities, the disclosure in paragraph 942-505-50-1(c) shall present the minimum amounts and ratios the institution must have to be categorized as adequately capitalized …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c06ef569b5c4e1593457a521f88e9d31de24dd652ca5cdac38ddda3d9633635e","downloaded_from":"2026-09-10T00:40:19.892Z","last_downloaded_at":"2026-09-10T00:40:19.892Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477270","source_sha256":"67e8081665e6af6341eba61ee53d43a614f6aeaf50293d3bf4d4a4d47800b6bd"}},{"citation":"505-942-50-1C","para":"50-1C","html":"
A bank or savings institution is (under federal regulations) deemed to be within a given capital category as of the most recent date of any of the following:
  1. a
    The date the institution filed a regulatory financial report
  2. b
    The date a final regulatory examination report is delivered to the institution
  3. c
    The date the institution's primary regulator provides written notice of the entity's capital category or that the institution's capital category has changed.
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If any of the conditions in the following paragraph exist, the possible material effects of such conditions and events on amounts and disclosures in the financial statements shall be disclosed.
","snippet":"If any of the conditions in the following paragraph exist, the possible material effects of such conditions and events on amounts and disclosures in the financial statements shall be disclosed.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:13f84e43aacd23db118f44d0145b5acf961a2432d1cdb43333df8bb8129b59bd","downloaded_from":"2026-09-10T00:40:19.892Z","last_downloaded_at":"2026-09-10T00:40:19.892Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477270","source_sha256":"67e8081665e6af6341eba61ee53d43a614f6aeaf50293d3bf4d4a4d47800b6bd"}},{"citation":"505-942-50-1E","para":"50-1E","html":"
The guidance in the preceding paragraph applies if, as of the most recent balance sheet date presented, any of the following conditions exist:
  1. a
    The entity is not in compliance with capital adequacy requirements
  2. b
    The entity is considered less than adequately capitalized under the prompt corrective action provisions.
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Other regulatory limitations may exist despite compliance with minimum regulatory capital requirements. To the extent such limitations could materially affect the economic resources of the institution and claims to those resources, they shall similarly be disclosed in the notes to financial statements.
","snippet":"Other regulatory limitations may exist despite compliance with minimum regulatory capital requirements. To the extent such limitations could materially affect the economic resources of the institution and claims to those…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:620f12106f3b1b5ccb7934a79b6b9eaf85f5196f87ce4f23aa53324d0df5f9d9","downloaded_from":"2026-09-10T00:40:19.892Z","last_downloaded_at":"2026-09-10T00:40:19.892Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477270","source_sha256":"67e8081665e6af6341eba61ee53d43a614f6aeaf50293d3bf4d4a4d47800b6bd"}},{"citation":"505-942-50-1G","para":"50-1G","html":"
The disclosures required by paragraphs 942-505-50-1 through 50-1F shall be presented for all significant subsidiaries of a holding company. Bank holding companies shall also present the disclosures required by paragraphs 942-505-50-1 through 50-1F as they apply to the holding company, except for the prompt corrective action disclosure required by paragraph 942-505-50-1(d). Savings institution holding companies are not subject to regulatory capital requirements separate from those of their subsidiaries. Bank holding companies are not subject to the prompt corrective action provisions of the Federal Deposit Insurance Act.
","snippet":"The disclosures required by paragraphs 942-505-50-1 through 50-1F shall be presented for all significant subsidiaries of a holding company. Bank holding companies shall also present the disclosures required by paragraphs…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0b9ef3f54ace2e8623be7c09bc5fe317c866f44440467054ffd54c8b6c5aa414","downloaded_from":"2026-09-10T00:40:19.892Z","last_downloaded_at":"2026-09-10T00:40:19.892Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477270","source_sha256":"67e8081665e6af6341eba61ee53d43a614f6aeaf50293d3bf4d4a4d47800b6bd"}},{"citation":"505-942-50-1H","para":"50-1H","html":"
Noncompliance with regulatory capital requirements could materially affect the economic resources of a credit union and claims to those resources. Accordingly, at a minimum, a credit union or corporate credit union within the scope of paragraph 942-10-15-2 shall disclose all of the following in notes to financial statements:
  1. a
    A description of the regulatory requirements for both of the following:
    1. 1
      Capital adequacy purposes
    2. 2
      Prompt corrective action.
  2. b
    The actual or possible material effects of noncompliance with those requirements.
  3. c
    Whether the entity is in compliance with the regulatory capital requirements, including, as of each balance sheet date presented, all of the following with respect to quantitative measures:
    1. 1
      Whether the institution meets the definition of a complex credit union as defined by the National Credit Union Administration
    2. 2
      The institution's required and actual capital ratios and required and actual capital amounts
    3. 3
      Factors that may significantly affect capital adequacy, such as potentially volatile components of capital, qualitative factors, or regulatory mandates.
  4. d
    As of each balance sheet date presented, the prompt corrective action category in which the institution was classified.
  5. e
    If, as of the most recent balance-sheet date or date financial statements are issued or are available to be issued (as discussed in Section 855-10-25), the institution is not in compliance with capital adequacy requirements, the possible material effects of such conditions on amounts and disclosures in the financial statements.
  6. f
    Whether after the balance sheet date and before the financial statements are issued or are available to be issued (as discussed in Section 855-10-25), management believes any events or changes have occurred to change the institution's prompt corrective action category.
Noncompliance with regulatory capital requirements may, when considered with other factors, raise substantial doubt about a credit union's ability to continue as a going concern for a reasonable period of time.
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Disclosures shall also be presented for any state-imposed capital requirements that are more stringent than or significantly different from federal requirements.
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Branches of foreign financial institutions, while they do not have regulatory capital requirements, may be required to maintain capital-equivalent deposits and, depending on facts and circumstances, supervisory-mandated reserves. These requirements carry regulatory uncertainty of a nature similar to that posed by the regulatory capital rules in that failure to meet such mandates can result in supervisory action and ultimately going-concern questions. Accordingly, branches shall disclose such requirements. Quantitative disclosure shall be made, highlighting mandated deposit or reserve requirements and actual balances in those reserve or deposit accounts at the balance sheet date(s) reported.
","snippet":"Branches of foreign financial institutions, while they do not have regulatory capital requirements, may be required to maintain capital-equivalent deposits and, depending on facts and circumstances, supervisory-mandated …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e5d3e06e8323f33dba33a525fb204933117aff9de906017838c71a091c4c64cc","downloaded_from":"2026-09-10T00:40:19.892Z","last_downloaded_at":"2026-09-10T00:40:19.892Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477270","source_sha256":"67e8081665e6af6341eba61ee53d43a614f6aeaf50293d3bf4d4a4d47800b6bd"}},{"citation":"505-942-50-4","para":"50-4","html":"
Further, if an uncertainty exists related to a parent that creates a higher-than-normal risk as to the viability of a branch or subsidiary, then that matter shall be adequately disclosed in the notes to the financial statements of the branch or subsidiary. If factors do not exist that indicate a higher than normal amount of risk or uncertainty regarding parent capital and other regulatory matters, then disclosures of capital and supervisory issues of the parent would not be required.
","snippet":"Further, if an uncertainty exists related to a parent that creates a higher-than-normal risk as to the viability of a branch or subsidiary, then that matter shall be adequately disclosed in the notes to the financial sta…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6989f836a212cf79fcf9251864a48030e935819c48d968b4781818a20648ac70","downloaded_from":"2026-09-10T00:40:19.892Z","last_downloaded_at":"2026-09-10T00:40:19.892Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477270","source_sha256":"67e8081665e6af6341eba61ee53d43a614f6aeaf50293d3bf4d4a4d47800b6bd"}},{"citation":"505-942-50-5","para":"50-5","html":"
If an institution is subject to capital requirements based on trust assets under management, a discussion of the existence of these requirements, ramifications of failure to meet them, and a measurement of the entity's position relative to imposed requirements shall be disclosed in the notes to the financial statements.
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