bank holding company

This Subtopic prescribes the note disclosures a bank, savings institution, credit union, foreign bank branch, or holding company must make about regulatory capital. At a minimum, the entity must describe the capital adequacy and prompt corrective action requirements, the actual/possible effects of noncompliance, whether it is in compliance (with required and actual capital ratios and amounts for each balance sheet date), and the prompt corrective action category it was assigned at its most recent notification (942-505-50-1). Noncompliance may, with other factors, raise substantial doubt about going concern.

This Subtopic tells bank holding companies how to present trust-preferred securities structures. Because the sponsoring bank holds no variable interest in the special-purpose trust, it cannot be the trust's primary beneficiary and does not consolidate it (810-942-55-2). Instead, the bank reports the subordinated debentures it issued to the trust as debt on its balance sheet, and accounts for its holding of the trust's common securities under the equity method (810-942-45-1).

ASC 942-10 is the Overall subtopic that sets the scope and organization of the Financial Services—Depository and Lending Topic. It identifies the Subtopics (balance sheet, income statement, receivables, investments, income taxes, business combinations, consolidation, etc.) that supply incremental, industry-specific guidance for depository and lending institutions, and lists the entities covered — banks, credit unions, finance and mortgage companies, savings institutions, bank and S&L holding companies, and U.S.-regulated branches/agencies of foreign banks. Entities in scope must still follow all otherwise applicable GAAP; Topic 942 only adds industry overlays.