FASB has announced it will make changes to the fair value accounting standards in the next few weeks. Why didnt NCUA wait to see if those changes may have impacted the financial position of these corporate credit unions?
NCUA reviewed the proposed changes that FASB is considering and evaluated the effect these changes may have on the individual corporate credit unions conserved. Under both the current standards and the proposed standards, the estimated credit losses on the impaired portfolios need to be recognized as other-than-temporary losses and charged to expense. FASBs proposed changes handle the market loss on the impaired portfolio as an item of Other Comprehensive Income that is recognized on the balance sheet but not expensed in the current period. The credit loss impact on the financial statements causes significant concern there would be no positive affect of delaying the actions for FASBs final decision.
Related Questions
- Section 1506, Accounting Changes, requires disclosures about future changes in accounting standards. Do private enterprises have to make these disclosures between now and the adoption of the new standards?
- If an enterprise concludes that it has no significant accounting policy changes on adoption of accounting standards for private enterprises, what sort of disclosure should it make on adoption?
- What is a realistic timeframe for the implementation of fair value accounting or Solvency II?
