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FASB Proposal on Interest Rate Risk & Liquidity Risk Disclosures

A comment letter was filed by the Missouri Credit Union Association (MCUA) and the Credit Union National Association (CUNA) with the Financial Accounting Standards Board (FASB) opposing its proposal that would require reporting entities, including credit unions and other financial institutions, to disclose information regarding their exposure to liquidity risk and interest rate risk.  In light of the range of information credit unions already provide to their members and to the government, the fact that credit unions are not publicly traded entities, and the fact that credit unions are already inundated with regulations and disclosure requirements, CUNA said the proposed requirements should not apply to credit unions.  MCUA and CUNA urged FASB to consider that the credit union business model is quite different from that of publicly traded entities and that the stakeholders of credit unions for information purposes are their members and the government, not shareholders who have purchased publicly traded stock.  As such, these disclosures are simply not appropriate for credit unions.