Event Date and Pricing

$249 for Webinar and Playback*

*Playback has no expiration and may be shared internally.

  • Monday, August 5, 2019

  • 12:00 – 1:30 pm (Eastern Time)

  • 11:00 – 12:30 pm (Central Time)

  • 10:00 – 11:30 am (Mountain Time)

  • 9:00 – 10:30 am (Pacific Time)

Curriculum

Background

Although Credit Unions (CUs) do not have the traditional stockholders’ equity section in the CU’s balance sheet, the CU still must have enough net worth to carry its assets. The minimum standards established for CUs to be well capitalized are:

  1. 7% for the net worth to assets ratio (for non-complex CUs)
  2. 10% for the risk-based capital ratio (for complex CUs; CUs with assets greater than $50,000,000)


Summary

This 3rd installment in our Call Report for Credit Unions webinar series explains the importance of maintaining sufficient capital to handle excess stress during hard economic times. It also shows how the NCUA follows the direction provided by Basel III in establishing net worth ratios to determine when a CU is:

  • Well capitalized
  • Adequately capitalized
  • Undercapitalized
  • Significantly undercapitalized
  • Critically undercapitalized


It also explains circumstances when the NCUA Board can take supervisory actions by forcing CUs to comply with certain “reclassifications.”

The accounting webinar will also review each line on page 12 of Form 5300 – the PCA net worth calculation worksheet – explaining how the automated system populates the various lines and how the CU Administrator must input amounts on certain lines. Although no input is required by the CU, the webinar carefully explains how RBNW is calculated.

Learning Objectives

  • Distinguish between PCA net worth ratio and RBNW ratio
  • Explain Prompt Corrective Action (PCA)
  • Understand Basel III requirements
  • Know the capitalization criterion
  • Differentiate between individual earnings, regular reserves, and other reserves
  • Comprehend what actions to take when there is a merger or if the CU makes an election to use the alternative RBNW ratio
  • Know what to do when ASC Topic 306 (CECL) is adopted (one time adjustment to undivided profits)


Save almost 50% by registering for all 4 sessions in this critical accounting training series!

Instructor

  • Paul Sanchez

    Paul Sanchez

    PSA Professional Service Associates / Founder


    Paul J. Sanchez, CPA, CBA, CFSA conducts a CPA practice in Port Washington, New York. He is also the owner of Professional Service Associates (PSA), a consulting and professional training and development business servicing corporate clients (auditors, controllers, etc.), CPA firms, professional associations and others. He was an assistant professor at Long Island University – C.W. Post Campus as well as an adjunct lecturer at City University of New York. Prior to starting PSA, he was the Vice President-Professional Development for the Audit Division of a regional bank and Director of Professional Practices and Vice President of a money-center bank, where he directed the professional practice development and training for internal auditors.

Credits

1.5 CPE Credits per Session