The Department of Housing and Urban Development (HUD) issued notice of a Federal Housing Administration (FHA) program change as a result of Mortgagee Letter 2009-31 “Strengthening Counterparty Risk Management” issued September 18, 2009. For additional information on this subject, see the Auditors Report published in December 2010 by Nearman, Maynard, Vallez CPAs.

November 2010

At the NCUA Board Meeting on November 18, 2010, the NCUA adoptee a combined NCUSIF premium and Stabilization Fund Assessment projected to range between 20 and 35 basis points. See www.ncua.gov (Press Release - November 2010) for additional information.

October 2010

·On Oct 6, 2010, the Financial Accounting Standards Board (FASB) issued a Proposed Accounting Standards Update, (How the Carrying Amount of a Reporting Unit Should Be Calculated When Performing Step 1 of Goodwill Impairment Test); Intangibles –Goodwill and  Other <Topic 350>.   The amendments in this proposed Update would clarify that the only acceptable method of calculating the carrying amount of a reporting unit is the equity premise.  Final comments from the public are due by November  5, 2010.

·On Oct 12, 2010, the Financial Accounting Standards Board (FASB) issued a Proposed Accounting Standards Update, (Clarifications to Accounting for Troubled Debt Restructurings by Creditors); Receivables <Topic 310>, on trouble debt restructurings.  This exposure draft hopes to address diversities in practice related to identifying troubled debt restructurings and to provide additional guidance necessary to assist creditors in determining whether a restructuring of a receivable meets the criteria to be considered a troubled debt restructuring, both for purposes of recording an impairment and for disclosure of troubled debt restructurings.  Final comments from the public are due by December 13, 2010.

·The 26th Annual AICPA National Conference on Credit Unions will be held in Orlando, Florida Oct 26th – 28th, 2011.

August 2010

·On August 17, 2010, the Financial Accounting Standards Board (FASB) issued a Proposed Accounting Standards Update, (Leases); Leases <Topic 840>.   The FASB and the International Accounting Standards Board (IASB) initiated a joint project to develop a new approach to lease accounting that would ensure that assets and liabilities arising under leases are recognized in the standard of financial position.   Final comments from the public are due by December  15, 2010.

July 2010                                                  

In July 2010, the FASB issued ASU 2010-20, “Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses.”  This Update requires enhanced disclosures about the allowance for credit losses and the credit quality of financing receivables. The Update applies to financing receivables held by all creditors, including public and nonpublic entities that prepare financial statements in accordance with generally accepted accounting principles.

The objective of the amendments in this Update is for an entity to provide disclosures that facilitate financial statement users’ evaluation of the following:

a.The nature of credit risk inherent in the entity’s portfolio of financing receivables.
b.How that risk is analyzed and assessed in arriving at the allowance for credit losses.
c.The changes and reasons for those changes in the allowance for credit losses.

This Update defines two levels of disaggregation—portfolio segment and class of financing receivable.  Also, under this Update, there are six major categories of disclosures: allowance for credit losses, rollforward schedules of financing receivables, fair value, credit quality information, impaired financing receivables, and nonaccrual status.  The disclosures for allowance for credit losses, rollforward schedules of the allowance for credit losses and for financing receivables and fair value are disaggregated by portfolio segment.  The disclosures for credit quality information, impaired financing receivables, and nonaccrual status are further disaggregated by class.  For nonpublic entities, the disclosure requirements of this Update are required effective for annual reporting periods ending on or after December 15, 2011.

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