A good article from Jeffrey Rogers Hummel at George Mason’s History News Network:
The Federal Reserve’s H.4.1 Release for January 6, 2011, announced an accounting change in the Fed’s reporting of residual earnings distributed to the U.S. Treasury. This has raised alarm bells, not only among libertarian critics of the Fed (here and here) but also among others. The concern is that it will now be easier for the Fed to disguise losses from its expanded portfolio of potentially toxic assets and possibly even avoid any resulting insolvency. While there is an element of truth to this concern, in the final analysis, the accounting change hardly matters at all.