WASHINGTON (10/10/08)—Corporate credit unions, some of which hold large portfolios of agency and non-agency residential mortgage-backed securities, yesterday urged the Federal Accounting Standards Board (FASB) to amend the definition of fair value for held-to-maturity (HTM) and available-for-sale (AFS) securities to the net realizable value of these securities. The Association of Corporate Credit Unions (ACCU) advocated the position in a comment letter filed yesterday. ACCU said the amended definition “is necessary in order to place investors in debt securities on equal footing with entities that hold loan portfolios for investment.” “We believe that securitized loans should not be treated differently than unsecuritized loans when the intent and ability to hold the investments is present in both cases,” said ACCU. “At a minimum, FASB should allow the current severe liquidity risk premiums to be adjusted in the determination of fair value to levels observed during periods of normal market activity.” ACCU maintained that financial instruments classified as trading securities should continue to be carried at liquidation--or exit--prices. “Using net realizable value provides a better definition of fair value and a more meaningful measurement of the true economic condition of an entity with regards to its HTM and AFS securities,” said ACCU.