WASHINGTON (3/28/11)--Credit unions that wish to comment on the Financial Accounting Standards Board’s (FASB) proposed accounting standards update on accounting for financial instruments must do so by the end of the day. FASB has proposed a number of significant changes to accounting for most financial assets and liabilities. Changes to the accounting standards on credit impairment are among those proposed by FASB. Under FASB’s proposal, entities would need to base expected losses on all available information—including forward-looking information. The proposal would also require an entity to determine an impairment allowance by assigning financial assets to a “bad book” or “good book,” depending on the degree of uncertainty about the collectability of the assets’ cash flows. CUNA has asked credit unions for input on whether or not FASB’s proposed approach for recognition of impairment addresses the issue of delayed recognition of expected credit losses. CUNA has also requested more general comment on whether or not FASB’s proposed approach would provide information that is useful for decision-making. FASB will assess the comments and could incorporate suggestions into their work as they attempt to create a convergent standard on accounting for impairment of financial assets. FASB has said that it will issue a final accounting standards update on accounting for financial instruments, including the credit impairment model, later in 2011. For the CUNA comment call, use the resource link.