A credit union’s pre-purchase analysis should include a thorough evaluation of all significant risks, as well as management’s ability to identify, measure, monitor, and control those risks. An explanation of key risks (liquidity, transaction/operational, reputation, credit, interest rate, and compliance/legal) is included in this guide.
A credit union should be aware of the accounting treatment of any investments made for employee benefits. There may be instances where credit unions are unaware of the accounting for employee benefit investments and subsequent restatements will be necessary. Insurance products, in particular split-dollar insurance, have the potential for the most material restatements.
Last updated September 25, 2017
