In light of the current economic crisis, both CUNA and NAFCU today urged lawmakers to consider changing how financial institutions do some of their accounting.
Both organizations submitted letters to the House Subcommittee on Financial Markets, which is holding a hearing on the subject.
CUNA said that the "Mark-to-Market" accounting standard while "originally intended to enhance accuracy of publicly-disclosed financial information, is having the opposite effect in the present environment when applied to certain instruments."
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It says allowing a financial institution to separate assets that are hurt because of credit losses could be separated from losses due to liquidity would be "enormously beneficial."
NAFCU President Fred Becker wrote that his organization supports the reporting of assets as reported in the statement of financial position, at fair value and at the incurred loss amount.
Becker added that requiring the disclosures of these different "reporting measurement attributes" for debt securities and loans would "improve the quality of information to users of financial statements."
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