MSIC 2022 Annual Report

INANCIAL STATE

MASSACHUSETTS CREDIT UNION SHARE INSURANCE CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

N OTE 2 - S UMMARY OF S IGNIFICANT A CCOUNTING P OLICIES (C ONTINUED ) C OMPREHENSIVE I NCOME

Accounting principles generally accepted in the United States of America require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income. R ECLASSIFICATIONS Certain reclassifications have been made to the 2021 consolidated financial statement presentation to correspond to the current year's format. Total equity and net income are unchanged due to these reclassifications. R ISKS AND U NCERTAINTIES In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a pandemic, which continues to spread throughout the United States. The COVID-19 pandemic, whose effects first became known in January 2020, is having a broad and negative impact on commerce and financial markets around the world. The Corporation has been able to continue its operations however, at this point, the extent to which COVID- 19 may impact the Corporation’s financial condition or results of operations is uncertain. The extent of the impact of COVID-19 on the Corporation’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak and its impact on the Corporation’s members, investment portfolio, employees and vendors, all of which at present, cannot be determined. Accordingly, the extent to which COVID-19 may impact the financial position and results of operations and cash flows is uncertain and the accompanying consolidated financial statements include no adjustments relating to the effects of this pandemic, if any. S UBSEQUENT E VENTS The Corporation has evaluated subsequent events through December 20, 2022, the date these consolidated financial statements were available to be issued and has determined that no material subsequent events have occurred that would affect the information presented in the accompanying consolidated financial statements or require additional disclosure.

2022 ANNUAL REPORT