WASHINGTON — Because of the unique nature of credit unions, asset valuation requires careful consideration the national credit union trade associations told the Financial Accounting Standards Board.

CUNA supported specific valuation guidance for financial reporting, including detailed implementation valuation guidance with "conceptual valuation for extraordinary situations." Additionally, the group advocated that FASB serve as the primary standard setting body with assistance from some type of task force. CUNA also said the guidance should focus on the national level and not reach the international level.

"This [invitation to comment] is of importance to the credit union movement in light of the forthcoming FASB final guidance on business combinations for mutuals," CUNA wrote. "That guidance will implement the FASB merger rule that eliminates the pooling-of-interests method of accounting for business combinations and instead mandate the use of the acquisition method of accounting. Use of the acquisition method will require the acquiring credit union to measure and recognize the fair (market) value of the assets and liabilities of the acquired credit union at the acquisition date. In addition, the continuing credit union will have to assess any potential impairment of goodwill and intangible assets (annually at a minimum)."