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More accounting guidance sent to NCUA examiners
WASHINGTON (4/10/09)—National Credit Union Administration (NCUA) examiners received additional clarification today regarding credit unions' flexibility in booking the National Credit Union Share Insurance Fund (NCUSIF) deposit impairment, according to NCUA. The agency wants to ensure that its field staff is consistent with advice to credit unions that they have some flexibility in deciding whether to book the impairment of the NCUSIF deposit on their March 31 statements. The newest guidance addresses the recently released Accounting Bulletin (AB 09-02) and subsequent memo to field staff on accounting for the insurance costs associated with NCUA Corporate Stabilization Plan. According to Mary Dunn, Credit Union National Association (CUNA) deputy general counsel, the newest communication clarifies that for any credit union using the accrual basis of accounting, examiners should not take exception with either of the following decisions:
* If the credit union records the deposit impairment and premium expense consistent with the guidance in AB 09-2; or * If the credit union accounts for the deposit impairment and premium expense (including not recording them at all) in accordance with written guidance from a licensed practitioner that states the guidance is consistent with generally accepted accounting principles—or GAAP.
Even if a credit union delays booking the impairment of the NCUSIF deposit without guidance from a licensed practitioner, Dunn said Thursday, the NCUA has indicated that examiners are directed not to take harsh action. They should instead note such action as an exception under "Informal Discussion Item" or at most an "Examiner's Finding" on the credit union's examination report. CUNA will continue to work with the NCUA as corporate credit union issues continue to develop.


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