WASHINGTON (2/6/12)--The credit union perspective on the Financial Accounting Foundation's (FAF) planned Private Company Standards Improvement Council (PCSIC) will be presented this week by Credit Union National Association (CUNA) Accounting Subcommittee Chairman, and Patelco CU Chief Financial Officer, Scott Waite.
Waite is one of 13 individuals selected to take part in the meeting, which will take place on the Stanford University campus in Palo Alto, Calif. on Tuesday. Waite, who is a long-time advisory member of the Financial Accounting Standards Board (FASB), recently represented credit unions and CUNA at a FASB private-company accounting roundtable held last October.
The FAF has proposed the creation of a new Private Company Standards Improvement Council that would review U.S. generally accepted accounting principles (GAAP) and determine how those standards could be improved to better serve the needs of private companies. The group could then issue modifications, if needed. The council would be comprised of a single chairperson and between 11 and 15 other members, according to the FAF.
CUNA is concerned that the proposed council "would simply make recommendations" to FASB and "be unable to actually set standards."
CUNA has repeatedly emphasized that financial accounting standards for credit unions and other private companies need to be improved, and challenges that many credit unions and others face due to the complexity of existing accounting standards should be addressed. The most pressing accounting standard issues facing credit unions are the complexity of current standards and the lack of cost-benefit analyses in the standard-setting process, CUNA has said.
CUNA has also called on FASB to "take the steps necessary to mitigate the burden on smaller entities, particularly when there is no or only minimal resulting benefit."