NCUA Issues PCC Bulletin Posted by AVCU on 9:55 AM

NCUA released accounting bulletin 16-1, clarifying its stance on credit unions' use of Private Company Council (PCC) alternative accounting reporting options. The clarification addresses filing a reports with NCUA that fall within U.S. Generally Accepted Accounting Principles (GAAP).

NCUA will permit PCC accounting alternatives issued by the Financial Accounting Standards Board when preparing its call reports. The FCU Act requires that accounting principles that govern regulatory reporting by credit unions be consistent with U.S. GAAP.

If the NCUA determines that a particular accounting principle within U.S. GAAP, including a PCC accounting alternative, is inconsistent with statutorily specified objectives, the NCUA can prescribe an accounting principle for regulatory reporting purposes that is no less stringent than U.S. GAAP.

Federal credit unions with under $10 million in assets, as well as some federally insured state-chartered credit unions under $10 million in assets, are not required to follow U.S. GAAP in regulatory reporting, but may elect to do so.

The bulletin is effective immediately.