LONDON — The International Accounting Standards Board agreed yesterday to reconsider the application of its International Financial Reporting Standards to credit unions, based on a comment letter submitted earlier this year by World Council of Credit Unions.
WOCCU is concerned about certain provisions in the IASB-proposed accounting standards for small and medium-sized enterprises (SMEs); primary among them, the fact that credit unions aren't included on the SME list. The standards, as proposed, could be detrimental to credit unions, said Dave Grace, WOCCU's vice president of association services.
"Excluding credit unions from the scope of the SME standards and requiring adherence to the full International Financial Reporting Standards is both impractical and counter to the IASB's intention of making accounting requirements more accessible to smaller non-listed institutions," Grace said in his letter to IASB board member Thomas E. Jones.
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IASB previously said credit unions take public deposits, and require full International Financial Reporting Standards, as opposed to the simplified SME standards. Nonetheless, IASB agreed to reconsider whether or not credit unions would fit within the scope of those who use the SME reporting standards.
"IASB's reconsideration of its standards is rare as a rulemaking body," Grace said. "We consider the move a strong vote of confidence in the global credit union movement."
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