Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Slight sigh for CUs with FASB rule delay
WASHINGTON (11/30/07)—Credit unions and other not-for-profit organizations may breathe a temporary sigh of relief since the Financial Accounting Standards Board (FASB) has proposed to defer the effective date of Interpretation 48 (FIN 48) for nonpublic entities, which addresses accounting for uncertainty in income taxes. FIN 48 is applicable to unrelated business income taxation (UBIT) for state-chartered credit unions and provides direction on how to financially recognize such tax when there is a question regarding the amount of the tax liability. Credit unions who are subject to UBIT and who made not have filed or paid would have had to record a liability on their financial statements anyway. The interpretation was to have taken effect for tax periods after Dec. 15, 2006, but FASB is now asking for public comment on pushing that back to periods after Dec. 15, 2007. There will be a 30-day period to comment on the proposed delay. Credit unions might welcome the delay, according to Scott Waite, chairman of the Credit Union National Association (CUNA) Accounting Task Force, because it would provide additional time determine just how to apply FIN 48 in the sometimes uncertain world of not-for-profit organizations. This is particularly true in the case of UBIT where there is still some uncertainty as to exactly what is and is not subject to the tax. Waite, who is also SVP-CFO of Patelco CU, San Francisco, said the CUNA task force is reviewing this and a number of other accounting issues for credit unions. He noted that FASB has also announced a partial delay of FAS 157, Fair Value Measurement, but not as it relates to financial assets and liabilities, except for those that are recognized or disclosed on a recurring basis. This is important to those who adopted FAS 159, Fair Value Option, earlier this year. The Accounting Task Force also is awaiting FASB's final determination on business combinations and will be analyzing that interpretation, which was expected earlier this fall, he said, adding that his group is also developing answers to questions for credit unions on the Visa IPO issue, which it plans to distribute to credit unions shortly.


RSS print
News Now LiveWire
.@TheNCUA :Low-income CUs can expand services to members, train staff,collaborate for efficiencies w/more than $1M in grants awarded 2day
6 hours ago
.@CUNA joins 11 other financial service orgs urging @SenateFloor to take up #CISA to strengthen cybersecurity information sharing
7 hours ago
.@RedwoodCU and its staff donated a combined $5,100 toward AIDS Walk San Francisco. The CU is a longtime sponsor of the event.
7 hours ago
See the latest from @CUNA's CompBlog on Customer Due Diligence. http://t.co/rzOzDUpNMT
7 hours ago
New #FinCEN proposal would strengthen, clarify due diligence obligations for financial institutions. http://t.co/2yxVUXCrYA
7 hours ago