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
CUNA's Dunn In Reuters: FASB Rule Would Burden CUs
WASHINGTON (4/19/13)--Credit Union National Association Deputy General Counsel Mary Dunn highlighted credit union concerns with a developing Financial Accounting Standards Board proposal before a national audience in a recent Reuters article.

FASB has proposed credit loss reporting changes that would utilize a single "expected loss" measurement for the recognition of credit losses; this would replace the multiple existing impairment models in U.S. generally accepted accounting principles that primarily use an "incurred loss" approach.

Dunn in the Reuters piece said this proposal, if approved, would force credit unions to double their allowance accounts. "The more you put in an account like that, the less there is out there for loans and new product development because it's sitting there parked," she said.

The Reuters report notes that the FASB proposal could significantly restrict lending by many forms of financial institution.

FASB is accepting comment on the credit loss proposal until May 31, and CUNA is developing a comment letter on the issue.

CUNA has noted the proposal could impact credit unions more severely than other institutions because of the statutory restrictions on their net worth. Credit unions, which are member-owned and are not publicly traded, should not be subject to FASB's proposed credit loss reporting rules, CUNA has said.


RSS





print
News Now LiveWire
What role are #creditunions playing in @gatesfoundation's 2030 vision of financial services? Read #NewsNow Monday
1 day ago
Consumers fear inaccurate info lingers on credit reports, says @FTC study Read @CUNA's News Now: http://t.co/RzNLMnaROO
1 day ago
@PCUA has formed a @LinkedIn networking group for former bankers turned #creditunion employees.
1 day ago
.@politico reports Democrats haven't picked the city yet, but their 2016 convention will be held the week of July 25.
1 day ago
.@cuna, @DCUC_HQ urge @CFPB to exempt #CUs from changes to Military Lending Act rules cuz CUs aren't part of the targeted problem. NN Monday
1 day ago