The NCUA has released an accounting bulletin (16-1) clarifying its policy regarding a credit union’s use of Private Company Council (PCC) alternative accounting reporting options. Specifically, options for filing a report with the NCUA board that fall within U.S. Generally Accepted Accounting Principles (GAAP).
According to the bulletin, the NCUA will permit PCC accounting alternatives issued by the Financial Accounting Standards Board when preparing its call reports. The Federal Credit Union Act requires that accounting principles that govern regulatory reporting by credit unions be consistent with U.S. GAAP.
If the NCUA determines that a particular accounting principle within U.S. GAAP, including a PCC accounting alternative, is inconsistent with statutorily specified objectives, the NCUA can prescribe an accounting principle for regulatory reporting purposes that is no less stringent than U.S. GAAP.
Federal credit unions with under $10 million in assets, as well as some federally insured state-chartered credit unions under $10 million in assets, are not required to follow U.S. GAAP in regulatory reporting, but may elect to do so.
The bulletin is effective immediately.
CUNA supports the work of the PCC and its application to credit unions.