WASHINGTON (9/16/13)--The Credit Union National Association strongly supports a pending Financial Accounting Standards Board proposal to redefine "public business entities," and CUNA in a Friday letter to the National Credit Union Administration called on the agency to support this proposal "for all credit unions, regardless of size and charter type."
"We have been urging FASB to consider this issue for quite some time and are strongly supporting the proposal," CUNA President/CEO Bill Cheney wrote in the letter to the agency. "We believe this proposal indicates that FASB appreciates key distinctions between organizations such as credit unions and others that are publicly traded, and that [U.S. Generally Accepted Accounting Principles] GAAP reporting requirements can and should be tailored to reflect those differences,"
The proposal would allow credit unions and other nonpublic business entities to use accounting and reporting alternatives under GAAP. The proposal would define a public business entity as an organization that meets any one of five criteria, such as requiring the entity to file financial statements with a regulator in preparation of sale of securities. As proposed, credit unions would not be included within the definition of a public business entity, which is an aspect of the proposal that CUNA supports.
Overall, the FASB proposal could result in more flexible accounting requirements for nonpublic business entities.
The NCUA's views on this issue are very significant because under the proposal, prudential regulators such as NCUA would play a key role in permitting their regulated entities to modified standards that would still qualify as GAAP, the letter said.
For the full CUNA letter, use the resource link.