WASHINGTON - The vast majority of credit unions would have five or six years to make any changes to accounting standards that result from efforts to rewrite parts of the generally accepted accounting procedures to resolve differences to international standards, Financial Accounting Standards Board Chairman Robert Herz said today.
Herz told attendees of CUNA's Governmental Affairs Conference that some of the changes, which could affect both reporting and capital requirements, would apply to public companies by 2015. However, smaller financial institutions, including credit unions would have more time to adjust.
He said that the discussions with their European counterparts are focusing on issues such as how to deal with off balance sheet instruments and the question of fair value accounting vs. amortized costs accounting.
Herz's organization is meeting regularly with the International Accounting Standards Board to come up with a joint proposal.
He urged attendees to contact FASB or work through CUNA to discuss their concerns because "your input is absolutely vital."
Herz spent part of his talk explaining FASB's functions and noted that it doesn't have a direct say over the accounting practices used by the federal government.
"I am not going to say anything about the federal government's accounting, because if you can't say anything nice you shouldn't say anything," he quipped.