How to implement a change from FASB related to measurement and recognition of financial assets and liabilities
In response to ASU 2016-01, many credit unions will have to update their reported financial statements to appropriately reflect the new accounting method for investments. This is not a complex change, but does require a cumulative effect adjustment to treat the investments as though they have always been accounted for under the new method. This also requires amending all presented financial statements to appropriately reflect the change.
While this whitepaper can get you off on the right foot, credit unions should seek professional advice from tax, accounting and legal advisors as laws and regulations may vary depending on particular circumstances.