Credit Unions Mentioned in IFRS Virtual Conference

At the IFRS Foundation's IFRS Virtual Conference a panel discussing the Second Comprehensive Review of the IFRS for SMEs Standard mentioned that credit unions in particular were interested in clarifying the scope of the IFRS for SME standard to clarify that IFRS for SMEs can be used for purposes of calculating Expected Credit Losses and other accounting measures. WOCCU is pleased to hear that this possibility will be considered by IFRS.

Currently the United Kingdom and the Republic of Ireland base their requirements on IFRS for SMEs.  Small credit unions in the United States allows credit unions under $10 million in assets to follow Regulatory Accounting Principles which are similarly less stringent than G.A.A.P.  Many countries are reluctant to allow the use of IFRS for SMEs for accounting purposes for credit unions because the lack of clarity surrounding the applicability of the "publicly accountable" standard, which many regulators interpret as prohibiting them from using the standard for credit unions.

WOCCU has urged clear expansion of the standard as use of the IFRS for SME standard would represent a lighter and more appropriate treatment of IFRS 9/CECL for credit unions.  WOCCU intends to comment on the review by the close of the October 28 comment period.

International Accounting Standards Board