Investor Presentaiton
LOUISIANA CORPORATE CREDIT UNION
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Perpetual Contributed Capital
Perpetual contributed capital (PCC) represents the investment required for membership capital voting rights
and membership by credit unions. PCC is not negotiable or assignable but may be transferable to another
eligible member credit union under certain provisions. PCC may not be pledged or used as security for
borrowing. PCC dividends are determined based on net earnings and the overall capital needs of the Credit
Union. Additionally, PCC dividends are not guaranteed and may be suspended if earnings are negative and/or
capital levels fall below regulatory and/or policy minimum levels.
Revenue Recognition
The Credit Union recognizes a significant portion of its revenue from contracts with customers in
accordance with ASC 606, Revenue from Contracts with Customers. The Credit Union generally satisfies
its performance obligations on its contracts with customers as services are rendered, and the transaction
prices are typically fixed, charged either on a periodic basis or based on activity. Since performance
obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment
involved in applying ASC 606 that significantly affects the determination of the amount and timing of
revenue from contracts with customers.
Non-interest income includes fees from the Credit Union's members for transaction-based activities, such
as account maintenance, share draft processing, wire transfers and ACH origination and receipt. These fees
are recognized at the time the transaction is executed as that is the point in time the Credit Union fulfills
the member's request. The Credit Union also acts as an agent for third-party vendors that provide
investment and lending services and products. Upon completion of the sale of services or products to a
member, the Credit Union receives fees from the third-party vendor. The performance obligation to the
third-party vendor is satisfied and the fee income is recognized at that point in time.
The majority of the Credit Union's revenue is not subject to ASC 606, including investment income, loan
interest income and gain on sales of investment securities, if any. The recognition of revenues from interest-
earning assets is based on the underlying loan agreements, securities contracts or other similar contracts.
Due to the nature of the services provided, the Credit Union does not incur costs to obtain contracts, and
there are no material incremental costs to fulfill these contracts that should be capitalized. Additionally,
there are no material contract assets or liabilities as the Credit Union does not typically enter into long-term
contracts with its members.
Advertising
The Credit Union's policy is to expense advertising costs as incurred. Advertising expense was $3,410 and
$4,306 for the years ended December 31, 2021 and 2020, respectively.
Comprehensive Income (Loss)
Comprehensive income or loss consists of net income or loss and other comprehensive income or loss that
includes unrealized gains and losses on investment securities available for sale, which are also recognized
as a separate component of members' equity.
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