Statements of Position

Files

Download

Download Full Text (3.2 MB)

Description

This proposed audit and accounting guide describes operations and accounting practices that are unique to the credit union industry as well as matters that are unique to the audit of a credit unions' financial statements. In addition, it describes some of the regulatory requirements of the industry. The proposed guide states that savings (share) accounts in a credit union should be classified as liabilities on the credit union's statement of financial condition. This presentation is consistent with the prevailing practice in mutually owned savings and loan associations and savings banks. Furthermore, it is consistent with the concept of liabilities expressed in FASB Statement of Accounting Concepts No. 3, Elements of Financial Statements of Business Enterprises. There are those who believe that savings (shares) should be classified as equity for the following reasons: (1) Shares are legally defined as equity; (2) Shares function as equity and represent ownership; (3) As with any corporate stock, shares are at risk. In summary, shares function as equity and those functions are unique to the concept of what a credit union is and what it represents in the world of financial institutions--a cooperative pooling of funds (equity) to be managed for the benefit of the member owners.

Publication Date

1983

Relational Format

Book

Keywords

Credit unions -- United States -- Auditing; Credit unions -- United States -- Accounting; Credit unions -- Standards -- United States; Bank examination -- Standards -- United States

Disciplines

Accounting | Taxation

Comments

Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.

Proposed audit and accounting guide : audits of credit unions ;Audits of credit unions; Exposure draft (American Institute of Certified Public Accountants), 1983, Oct. 21

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.