Jan 01 1994

Financial Reporting by Credit Unions in the United States


This paper documents the accounting practices and the level of disclosure by U.S. credit unions. Such evidence will increase understanding of the role of financial reporting for credit unions and is important for evaluating the potential merits of additional regulation in this area.

Professors Warfield and Henning examine whether current credit union accounting and disclosure practices are adequate, conditional on both the costs and benefits of such practices. Specifically, they analyze the results of a survey of credit unions that documents their accounting measurement practices and measures the extent of disclosure of credit union financial position and operating results in financial statements.

In addition to regulatory considerations, management must also consider the costs associated with financial reporting and disclosure. Consequently, the researchers assess whether variation in the credit union accounting measurement and disclosure policies can be explained by variation in costs and benefits of accounting and disclosure practices.

Report Number 1