New AICPA Guidelines Provide Reporting Flexibility
Last night, CUNA distributed a summary of accounting guidelines to members to assist with the question of whether or not to record U.S. Central's Dec. 31 losses on their books.
The guidelines, written by the American Institute of Certified Public Accountants, addressed credit union accounting for the costs associated with the NCUA's Corporate Stabilization Plan, which includes considerations for both natural person credit unions and corporates.
The guidelines come to the general conclusion that credit unions have flexibility when it comes to reporting the NCUSIF insurance premium and U.S. Central-related losses.
For example, the AICPA provides documentation when arguing that expenses could be reported in 2009 instead of 2008, because the actual impairment and corresponding NCUA action occurred in January. However, it also provides documentation that says it could be reported in 2008.
The AICPA also addressed corporates, saying the NCUSIF write-off of U.S. Central's capital infusion should be considered when assessing the impairment question.