Credit unions would have to book their loans at their current value on their balance sheets under proposed rules issued by the Financial Accounting Standards Board.
The regulations would require credit unions and other financial institutions with assets of more than $10 million to measure loan loss reserves on an "expected loss," basis rather than the current method which is a historical, or "incurred loss," approach.
Both the fair value and amortized original cost would have to be displayed on the balance sheet.
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