WASHINGTON (6/24/13)--The Credit Union National Association supports the efforts of the Financial Accounting Standards Board (FASB) to recognize "that there are material differences between private companies and public companies and that reporting requirements should reflect those distinctions, at least in some instances," in its proposed private company decision-making framework.
However, in a Friday comment letter to the standard setter, CUNA Assistant General Counsel Luke Martone said the uniqueness of the credit union structure should be recognized as FASB develops a decision-making framework that will guide the Private Company Council (PCC) as it determines whether exceptions to U.S. Generally Accepted Accounting Principles--or GAAP--for credit unions and other private entities are appropriate.
The framework should also help identify opportunities for reducing the complexity and costs associated with preparing financial statements in accordance with U.S. GAAP.
FASB and PCC are working to improve the process of setting accounting standards for private companies, and this process began with the release of a July 2012 discussion paper. The proposed framework followed the release of that paper, and many CUNA suggestions have been incorporated into the framework. Those suggestions regard:
The use of alternative recognition and measurement standards; and
The application of industry-specific guidance.
Use the resource link to read the complete CUNA comment.