Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
CUNA says FASB impairment plan an improvement
WASHINGTON (1/2/09)—Proposed changes to Financial Accounting Standards Board (FASB) guidance on impairment and interest income measurement generally are an improvement over current rules for recognizing when a security is considered other-than-temporarily-impaired (OTTI), according to a comment letter from the Credit Union National Association (CUNA). Currently, there are two similar models for determining OTTI, but they do include some key differences. One of FASB’s primary objectives in issuing the proposed amendment is to increase consistency between the models, an objective supported by the trade group. The model addressed by this proposal is used to determine OTTI for low credit quality securities; this includes any mortgage-backed securities with such a credit rating. “Overall, we are encouraged by this (FASB staff position) and believe holders of securities covered by EITF 99-20 will benefit from these proposed changes in the current dislocated market, but we believe its long-term effects are less certain,” wrote CUNA Regulatory Research Counsel Luke Martone. The new FASB guidance would shift the determination of impairment from market participants’ assessment of cash flows to management’s assessment, a change backed both CUNA. Once determined as OTTI, however, the security would still be required to be marked down to fair value. Use the resource links below to access the comment letter.
Other Resources

RSS





print
News Now LiveWire
Watching #SuperBowlXLIX this Sunday? Look for regional #creditunion #commercials @CltMetroCU @BECU @golden1cu #Seahawks #Patriots
10 hours ago
Philadelphia's American Bakery Workers FCU liquidated by @TheNCUA; @trumarkonline assumes shares
11 hours ago
More branch shutterings by @Citi: 4th-largest bank to close 10% of #Chicago area branches HT @CrainsChicago http://t.co/2vAvgucLY5
12 hours ago
56% struggle with subprime credit scores says @cfed survey HT @washingtonpost http://t.co/RHmMvuhNtw
12 hours ago
How to use social media for crisis communications Feb. 10 webinar from @SBAgov, @AgilityRecovery http://t.co/d16t8RHr7n
13 hours ago