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If your credit union maintains investments in any type of mutual fund, exchange-traded fund or stock, then you’ll want to seriously reconsider those investments. If your credit union is currently contemplating investing in these types of securities, then you’ll want to pause and reevaluate.

The Financial Accounting Standards Board issued new accounting guidance on Jan. 5, 2016 (ASU 2016-01) that eliminates the available for sale classification for equity securities.

The new standard requires all entities to record equity securities at fair value through net income. In other words, price changes of equity securities can no longer be recorded as unrealized gains or losses in other comprehensive income. Price changes must instead be recorded directly in net income.

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