MASSACHUSETTS CREDIT UNION SHARE INSURANCE CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2023 AND 2022
N OTE 2 - S UMMARY OF S IGNIFICANT A CCOUNTING P OLICIES (C ONTINUED ) I NVESTMENT S ECURITIES (C ONTINUED ) Securities Available-for-Sale (Continued)
OTTI is required to be recognized if: (1) the Corporation intends to sell the security; (2) it is “more likely than not” that the Corporation will be required to sell the security before recovery of its amortized cost basis; or (3) for debt securities, the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. For all impaired debt securities that the Corporation intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. Credit-related OTTI for all other impaired debt securities is recognized through earnings. Non-credit related OTTI for such debt securities is recognized in other comprehensive income. F EDERAL H OME L OAN B ANK S TOCK The Corporation, as a member of the Federal Home Loan Bank of Boston (“FHLB”), is required to maintain an investment in capital stock of the FHLB. Based on redemption provisions of the FHLB, the stock has no quoted market value and is carried at cost. Management reviews this investment for impairment based on the ultimate recoverability of the cost basis in the FHLB stock. As of September 30, 2023 and 2022, no impairment has been recognized. R EAL E STATE H ELD FOR I NVESTMENT AND P REMISES AND E QUIPMENT , N ET Land, buildings, equipment, computer software and leasehold improvements are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the respective assets or the terms of the lease, if shorter, ranging from three to forty years. Expenditures for improvements which extend the life of an asset are capitalized and depreciated over the asset’s remaining useful life. V ALUATION OF L ONG -L IVED A SSETS Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the long-lived asset is measured by a comparison of the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. Assets to be disposed of are reportable at the lower of the carrying amount or fair value, less costs to sell.
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86 INTERNATIONAL COLLABORATION
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