Accounting Bulletin Summary

Sept., 2016

NCUA Accounting Bulletin No. 16-1: PCC Accounting
September 2016

NCUA’s accounting bulletin, applying to all federally insured credit unions (FICUSs), confirms that some credit unions may use Private Company Council (PCC) alternative accounting reporting options within U.S. Generally Accepted Accounting Principles (GAAP) when filing a report with the NCUA Board.

NCUA notes that the Federal Credit Union Act (FCUA) requires regulatory reporting to be “consistent” with GAAP, and that in its view, the FASB approved PCC meets the statutory requirement.

Of the 4 PCC accounting alternatives currently endorsed by the FASB, credit unions are permitted to adopt the 3 following:

  • ASU No. 2014-02, Intangibles – Goodwill and Other (Topic 350): Accounting for Goodwill
  • ASU No. 2014-07, Consolidation (Topic 810): Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements
  • ASU No. 2014-18, Business Combinations (Topic 805): Accounting for Identifiable Intangible Assets in a Business Combination

The fourth alternative, ASU No. 2014-03, Derivatives and Hedging (Topic 815): Accounting for Certain Receive-Variable, Pay Fixed Interest Rates Swaps-Simplified Hedge Accounting Approach, does not apply to financial institutions.

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