The debate over how much, if any, of U.S. Central Federal Credit Union's December capital losses will be absorbed by retail corporates through their paid-in capital continues.
The Association of Corporate Credit Unions has been facilitating a forum for corporate CFOs and their respective auditing firms, and will prepare a document that sums up their opinions over the next couple of weeks, said ACCU Executive Director Brad Miller.
"There are differing opinions among audit firms as to how to treat the U.S. Central situation, and we are discussing a range of potential scenarios with supporting logic for each," Miller said.
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Ultimately, the impairment decision is up to individual corporates and their auditors, said NCUA spokesman John McKechnie. However, he said the agency expects corporates to follow GAAP accounting rules, and will review "how a corporate CPA determines the correct accounting treatment."
Those accounting rules will come under review Thursday in a House Financial Services subcommittee hearing, led by Rep. Paul Kanjorski (D-Penn.). Final decisions on U.S. Central-related impairments aren't officially due until next month's audited year-end financials deadline.
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