Do Credit Unions Have Accounting Issues?

Enron, Xerox, Arthur Andersen, and now WorldCom---the disclosures of accounting restatements are now a regular news feature. Chip Filson asks Could credit unions have an accounting issue that could impact the system’s reputation and public confidence? The answer may surprise you.

 
 

Enron, WorldCom, Xerox, Arthur Andersen---the disclosures of accounting restatements are now a regular news feature. The damage isn't just revisions to sales or profits, employees' futures, or even corporate failures. More critical is the loss of reputation in the minds of both investors and the public. Indeed whole industries-telecommunications, accounting and energy- are now under suspicion because of the actions of some of these firms.

Credit unions as cooperatives are not subject to some of the market-driven excesses that have contributed to these manipulations, even frauds. So, can we breathe a sigh of relief that this is not an area for worry in the credit union system?

Could credit unions have an accounting issue that could impact the system's reputation and public confidence?

The July Callahan Report includes a case study where numbers are being "tweaked" in the system. Read the facts to make up your own mind about a recent change in accounting treatment by a multi-billion dollar credit union player. In addition, Patelco Credit Union CEO Ed Callahan looks at the real "quality" that is the basis for members bringing their funds to credit unions-it is not just uncertainty about the stock market. Finally, strategist and technology manager Randy Karnes cautions credit unions who are still hoping and waiting to buy a full e-commerce solution in a box.

To receive this month's Callahan Report issue on July 9, simply click here to learn more and start your 1-year subscription!

 

 

 

July 1, 2002


Comments

 
 
 

No comments have been posted yet. Be the first one.