Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Final FASB guidance not far enough says CUNA
WASHINGTON (10/14/08)—The Financial Accounting Standards Board’s (FASB) released final guidance on using FASB Statement No. 157, Fair Value Measurements, in a market that is not active. According to the Credit Union National Association (CUNA), the guidance does not go far enough in addressing key issues used to determine the fair value for certain assets where there is an ability and intent to hold until recovery or maturity. However, the credit union trade association generally supports two points of additional guidance, said CUNA Deputy General Counsel Mary Dunn, who, under the auspices of CUNA’s Accounting Task Force, authored CUNA’s letter to FASB last week. In its final guidance, FASB provides that in determining fair value of the mortgage-backed security, information about the performance of the underlying mortgage loans--such as delinquency and foreclosure rates, loss experience, and prepayment rates--may be appropriate. Also, FASB added a change to the summary of the key existing principles of Statement 157 to help clarify that not all asset sales in a troubled market are forced liquidations or fire sales. Likewise, it is not appropriate to simply accept any transaction price as reflecting the fair value of an asset, according to FASB. The recently-enacted Emergency Economic Stabilization Act, among other things, authorizes the Securities and Exchange Commission (SEC) to suspend the mark-to-market standards and to evaluate that application. CUNA has urged the SEC to proceed with its evaluation of the fair value standards under the new Emergency Economic Stabilization Act “as expeditiously as possible.” Use the link below to access the complete final FASB Staff Position.
Other Resources

RSS print
News Now LiveWire
.@CUANYtweets hiking the Hill today with young #creditunion professionals http://t.co/9xgH2Aw2OM
6 minutes ago
.@CUSocialGood, @CafeGive partnership to measure Return on Intent for social, community efforts See #NewsNow http://t.co/LfpUes76KG
53 minutes ago
Economic activity slowed in June, according to the #Chicago Fed's national activity index, released today #Market http://t.co/1pN6peM8my
16 hours ago
Money burns a hole in workers' pockets after payday, despite best intentions via @WSJeconomy http://t.co/A9SNiUdf9v
16 hours ago
"SAR Stats," new from #FinCEN, focuses on #bitcoin. See #NewsNow http://t.co/vS7iTwY2SW
18 hours ago