Credit unions received some regulatory relief today when the Federal Accounting Standards Board today allowed for greater flexibility when companies value their investments.
FASB allowed companies to use their judgment when determining what an asset's "fair value." The changes take effect for the second quarter of 2009.
Assets could be valued at what they might sell for in an "orderly sale" not necessarily under current conditions.
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Credit unions, banks and their allies have pushed for changes because they contend that existing rules force those institutions to take losses during downturns because the investments have to be valued lower.
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