Investor Presentaiton
LOUISIANA CORPORATE CREDIT UNION
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Operations
Louisiana Corporate Credit Union (the Credit Union) is a cooperative association organized in accordance
with the provisions of the Louisiana Revised Statutes Section 6.641 Credit Unions, for the purpose of
serving corporate accounts by providing money management services, creating a source of credit and
offering various correspondent services to its members who are principally state and federally chartered
credit unions located in the United States. The Credit Union competes with other asset management and
investment companies, including other corporate credit unions. The Credit Union is chartered by the State
of Louisiana (State) and regulated by the State as well as by the federal government through the National
Credit Union Administration (NCUA), which also provides insurance on members' deposits.
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).
The Financial Accounting Standards Board (FASB) provides authoritative guidance regarding U.S. GAAP
through the Accounting Standards Codification (ASC).
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and that affect the reported amounts
of revenues and expenses during the reporting period. Actual results could differ from those estimates.
The most significant estimates susceptible to change are those related to the assessment of other-than-
temporary impairment on investments.
Cash and Cash Equivalents
For purposes of financial statement classification, the Credit Union considers all highly liquid debt instruments
purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents
consist of demand deposit accounts.
The Credit Union maintains its cash in deposit accounts at various financial institutions. These balances, at
times, may exceed federally insured limits. Management believes the credit risk associated with these deposits
is minimal.
Investment Securities
Debt securities that management has the positive intent and ability to hold to maturity are classified as
"held-to-maturity” and recorded at amortized cost. Securities not classified as held-to-maturity or trading
are classified as "available-for-sale" and recorded at estimated fair value, with unrealized gains and losses
excluded from earnings and reported in other comprehensive income (loss). At December 31, 2021 and
2020, all securities were available-for-sale. The Credit Union does not maintain a trading portfolio.
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