Credit unions could get a reprieve from the requirement that they book their loans at their current value on their balance sheets, as a result of decision made today by the Financial Accounting Standards Board.

In a preliminary ruling, the board said credit unions could carry their assets and liabilities at an amortized cost. The board is set to issue a final rule later this year.

The proposed rule would have required 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.

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