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
FASB excludes CUs from ' public business entity' definition
WASHINGTON (2/11/14)--The Financial Accounting Standards Board (FASB) recently issued a final standard that defines the term "public business entity," and it excluded credit unions from that definition. That is notable for credit unions because the definition will be used by FASB and its Private Company Council (PCC) to specify the scope of future accounting guidance.
 
The Credit Union National Association and other stakeholders asked FASB to improve its definition of "public business entity" to clear up current inconsistencies and complexities caused by having multiple definitions.  The new definition will make it clearer which nonpublic entities potentially qualify for alternative financial accounting and reporting guidance.
 
CUNA has maintained that credit unions clearly are outside the definition of a "public business entity" and therefore should be eligible for alternatives under Generally Accepted Accounting Principles--or GAAP--that are established by the PCC.
 
However, CUNA Assistant General Counsel Luke Martone cautioned, credit unions should proceed with some caution.
 
"FASB has stated that, 'decisions about whether an entity may apply permitted differences within U.S. GAAP ultimately may be determined by regulators...and other creditors, or other financial statement users that may not accept financial statements that reflect accounting or reporting alternatives for private companies,'" Martone noted.
 
"So, the extent of any latitude afforded to credit unions will also involve the National Credit Union Administration and that could be problematic--although we will push them for as much flexibility as possible.
 
"We will be discussing this issue again with senior NCUA staff during meetings at the CUNA Governmental Affairs Conference this month and encouraging them to allow eligible private company alternatives," Martone said.
Other Resources


RSS





print
News Now LiveWire
What will a viking raid? Town or your wallet? http://t.co/JJYXXAGk7g @OhioCreditUnion @GCUAGov #StoptheDataBreaches http://t.co/7jc7rECKSF
36 minutes ago
#creditunions face 'perfect storm' of tech changes in 2015 #NewsNow http://t.co/K2a6GZX8k5
52 minutes ago
Middle-class families walking a tightrope with little savings @pewresearch HT @CNNMoney http://t.co/Pfu2KHASZa
17 hours ago
.@CUNA's @SchenkMike on @federalreserve meeting: http://t.co/Ry39vjWdA1
17 hours ago
#creditunion cites prize-linked savings success in @WSJ http://t.co/3CXupUMx5d
20 hours ago