Beginning in 2009 credit unions will be required to follow the “Acquisition” method of accounting for mergers as specified in SFAS 141-R.  Prior to this new requirement, mergers in credit unions were accounted for by use of the “Pooling” method which simply added the two balance sheets together at historical cost.  The Acquisition method requires the acquirer to record the transaction at the fair value of the acquiree.  Individual assets and liabilities, both tangible and intangible, and “entity” value will need to be determined in a manner consistent with GAAP.  Accordingly, auditors and examiners are now focusing their attention on documentation of, and compliance with these new and complex accounting requirements.

Sacher Consulting has teamed up with ALM First Financial Advisors, LLC  and RP Financial, LC to offer credit unions a “one-stop” solution to the fair value challenges presented by the merger accounting requirements.

If your credit union is considering a merger, it will be critical fo you to consider the complexities of the new accounting rules, and consider the impact before the merger is executed.  Sacher Consulting can help.  If you would like to discuss your pending merger, please contact for further information.