NASCUS has provided comment to the Financial Accounting Standards Board (FASB) on its latest exposure draft of FASB 141, Business Combinations.
In its Oct. 27 comment letter, NASCUS reemphasized its position on business combinations expressed in a previous comment letter, that it believes the purchase accounting method is not the best accounting method for business combinations between credit unions.
NASCUS argued that credit unions have many distinctive characteristics that differentiate them from business combinations between those of mutual enterprises and investor-owned entities. Moreover, NASCUS said that in many cases, credit union business combinations are entities of similar size, making it challenging at times to determine the acquiring institution, except by virtue of the surviving charter.
