ALEXANDRIA, Va. — NCUA has revised its policy on small credit union accounting for donated equity.
Previously, credit unions under $10 million in assets accounted for donated tangible fixed assets of material value by recording the estimated fair value as donated equity, a separate classification of the credit union's equity.
Under the new policy, credit unions should record the receipt of a gift or donation of a tangible fixed asset of material value as income at the estimated fair value. "Credit unions should no longer use the Donated Equity account to account for these assets when a credit union receives such donations," an NCUA Accounting Bulletin (07-1) stated. "The existing [Accounting Manual for Federal Credit Unions] practice of recording cash and other immaterial fixed assets as income upon receipt will continue without change."
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