Meyster to FASB: Proposals should reflect CU needs
Aug. 26, 2013 – NAFCU Regulatory Affairs Counsel Angela Meyster wrote two letters to the Financial Accounting Standards Board about how its exposure draft proposals on accounting for goodwill and accounting for identifiable intangible assets in a business combination can better reflect credit union needs.
In both letters, Meyster thanked FASB for its efforts to reduce costs and complexity for credit unions complying with the accounting standards.
In her letter about goodwill, Meyster wrote that FASB should take into account the costs associated with complying with new accounting standards, especially as credit unions “do not typically engage in business combinations giving rise to significant levels of good will.” Meyster wrote that requiring credit unions to engage in goodwill impairment testing “would provide little additional information,” while draining credit union resources. Instead, she suggested FASB allow credit unions to “always engage in amortization of goodwill on a straight-line basis over its useful life.”
If credit unions must be subject to the new standards, Meyster said FASB should give additional guidance about what constitutes a “triggering event,” that would require goodwill impairment testing.
In her second letter, Meyster suggested changes to the proposed exposure draft for identifiable intangible assets in a business combination, and suggested FASB increase the proposal’s scope – “so that all identifiable intangible assets acquired pursuant to a business combination need not be recognized separately from goodwill.”