What is the accounting treatment of the CUES Yield Enhancement Program?
The accounting treatment for the invested assets depends on the type of underlying funding vehicle(s) chosen. Some funding vehicles require the investments to be marked to the market while others require reporting the assets at book value where market gains or losses are not reflected on the credit union’s financial statements. In most cases, a managed account investment will be treated as an available for sale asset and gains and losses will be treated as unrealized on the credit union’s balance sheet. An in-depth discussion and understanding of the accounting treatment is very important. It is also recommended that the credit union seek advice from its accounting firm.
