depository institution

This Subtopic governs how depository institutions account for assessments imposed by the Financing Corporation (FICO) under the Deposit Insurance Funds Act of 1996, which requires institutions with deposits assessable by the Deposit Insurance Fund to help finance outstanding FICO bonds. The single rule is that the FICO assessment is reported as a period cost as incurred (720-942-25-1) rather than capitalized or accrued for future periods.

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.