; and (3) limits funding for non-defense or non-security-related Federal programs that are not reauthorized according the schedule described in paragraph (1). 505. Policy statement on Federal accounting (a) Findings The House finds the following: (1) Current accounting methods fail to capture and present in a compelling manner the full scope of the Federal Government and its fiscal condition. (2) Most fiscal analyses produced by the Congressional Budget Office (CBO) are conducted over a 10-fiscal year period. The use of generational accounting or a longer time horizon would provide a more complete picture of the Federal Government’s fiscal condition. (3) The Federal budget currently accounts for most programs on a cash accounting basis, which records revenue and expenses when cash is actually paid or received. However, it accounts for loan and loan guarantee programs on an accrual basis, which records revenue when earned and expenses when incurred. (4) The Government Accountability Office has advised that accrual accounting may be more accurate than cash accounting in estimating the Federal Government’s liabilities for insurance and other programs. (5) Accrual accounting under the Federal Credit Reform Act of 1990 (FCRA) understates the risk and thus the true cost of some Federal programs, including loans and loan guarantees. (6) Fair-value accounting better reflects the risk associated with Federal loan and loan guarantee programs by using a market based discount rate. CBO, for example, uses fair-value accounting to measure the cost of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). (7) In comparing fair-value accounting to FCRA, CBO has concluded that adopting a fair-value approach would provide a more comprehensive way to measure the costs of Federal credit programs and would permit more level comparisons between those costs and the costs of other forms of Federal assistance . (8) The Department of the Treasury, when reporting the principal