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New Rules Could Potentially Refund Corporate Capital Accounts

News that the International Accounting Standards Board and Federal Accounting Standards Board might reconsider some mark-to-market accounting rules is good news for corporate credit unions.

By Heather Anderson | Updated on December 10, 2009

News that the International Accounting Standards Board and Federal Accounting Standards Board might reconsider some mark-to-market accounting rules is good news for corporate credit unions that are scrambling to avoid permanent capital write-downs based on what could be only temporary market dislocations.

Association of Corporate Credit Unions Executive Director Brad Miller called the move “huge”, saying under the proposed rules, it’s his understanding corporates could return any future gains on impaired investments back to capital accounts. Currently, if impaired investments perform better than estimated, those gains would be applied to earnings, and couldn’t be used to fund member contributed capital accounts.

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