User login

MCUA Comments on Two FASB Proposals

On Friday, Aug. 23, 2013, the Missouri Credit Union Association (MCUA) filed comment letters on two separate Financial Accounting Standards Board (FASB) proposals, both of which were developed through FASB’s Private Company Council (PCC). MCUA generally supports both proposals as issued for comments. The proposals would allow private reporting entities—including credit unions—to elect alternative standards within U.S. generally accepted accounting principles for (1) accounting for goodwill and (2) accounting in a business combination.

Specifically, MCUA filed a comment letter on the goodwill proposed alternative which would permit amortization of goodwill and a simplified goodwill impairment model. MCUA believes the proposed accounting alternative, when elected, would continue to provide decision-useful information to users of private company financial statements, while likely reducing the cost and complexity associated with the current goodwill impairment test. While value is recognized to some private reporting entities under the proposed alternative, MCUA believes its overall impact on credit unions is likely to be minimal.

MCUA also filed a comment letter on the business combination-related proposed alternative which would modify the requirement for private companies to separately recognize fewer intangible assets acquired in a business combination. MCUA believes the amendments in this proposal would likely reduce cost and complexity by providing an entity with an accounting alternative to recognize only those identifiable intangible assets arising from noncancelable contractual terms or those arising from other legal rights.


Vocab Legislation: