Understanding OTTI - New CUNA CFO Council Financial Flash

CUNA CFO Council
February 5, 2009 | COMMENTS

Understanding OTTI is the second “Financial Flash: Timely & Technical Tools for CFOs” from the CUNA CFO Council (presented by ACCU) as a free member benefit. A "Financial Flash" is intended to be a more technical, how-to type paper that helps address an immediate need vs. white papers, which are higher level, broader in scope and somewhat more philosophical or trend oriented. This Financial Flash includes a document and video.

Other-Than-Temporary-Impairment (OTTI) is an issue you will continue to hear about as financial institutions, including some corporate credit unions, report OTTI as a part of their financials. OTTI is an accounting term that is intended to reflect write-downs of assets (typically securities in the case of corporate credit unions) when there is a significant likelihood that the full 100% value of an asset will not be recovered.

The Association of Corporate Credit Unions (ACCU) has developed several pieces to provide an educational overview on OTTI from respected experts on the subject. The following video was commissioned by ACCU to provide an unbiased and educational perspective on OTTI . The video is hosted by Harold Sollenberger, an accounting professor at Michigan State University and Mike Sacher, CPA, credit union consultant and former audit manager at McGladry and Pullen.

> View/Download the Video (.wmv file - 14 minutes)

If you have any difficulty opening the link or viewing the video, please call this support line - (877) 293-8891.

> View/Download the Background/ FAQ Document  on OTTI

The CUNA CFO Council welcomes the comments and suggestions of members on this new member benefit. If you are aware of topics, writers, or finished pieces that are technical, topical, and timely we would like to know about them. Contact Pam Finch, Vice Chair, CUNA CFO Council at pfinch@mmfcu.org or 218-822-5101.