Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
CUNA urges unique treatment for CUs under FASB framework
WASHINGTON (11/5/12)--Credit unions are unique in their structure and the Credit Union National Association (CUNA) asked the Financial Accounting Standards Board (FASB) to recognize the uniqueness as it develops a decision-making framework that will guide the recently created Private Company Council as it determines whether exceptions to U.S. Generally Accepted Accounting Principles--or GAAP--for credit unions and other private entities are appropriate.

CUNA generally supported FASB's proposed framework saying it includes successfully appropriate factors differentiating private companies from public companies that the PCC will examine in its assessment of whether exceptions to GAAP are necessary and appropriate.

However, CUNA took exception with FASB's approach that would require all private companies, including credit unions, that apply certain industry-specific accounting guidance to generally follow the same industry-specific guidance that public companies follow.

In its Oct. 31 comment letter, CUNA noted that credit unions—as not-for-profit, member-owned financial cooperatives—exist to serve their members not to make a profit.  Unlike most other financial institutions, credit unions do not issue stock or pay dividends to outside stockholders.

"They use their earnings to build capital and work hard to provide favorable rates on loans, and savings, and to charge lower fees," reminded CUNA Assistant General Counsel Luke Martone in the letter.

"We urge FASB to consider that the credit union business model is quite different from that of publicly traded entities. The stakeholders of a credit union for information purposes are its members and its regulator, not the public or shareholders who have purchased publicly traded stock."

Use the resource link to read the complete CUNA comment.


RSS print
News Now LiveWire
.@FinancialCmte markup of Reg D Study Act set for Tuesday. CUNA will submit support letter. http://t.co/cDWkZ0Q0x1
3 hours ago
The 54th Western CUNA Management School graduated 89 students on July 25.
4 hours ago
.@CUNA Bank Secrecy Act training to reach 38 Mich. state examiners #NewsNow http://t.co/7HDPgwih8G
5 hours ago
St. Louis treasurer taps #creditunion to serve unbanked #NewsNow http://t.co/lWtcezJOej
23 hours ago
.@CUNAMutualGroup has committed $35K to @trustdotcoop over the next year to suppor the future of #creditunions.
7 25 ago