The International Accounting Standards Board's credit lossexposure draft differs from the model the Financial Action Standards Board hasproposed in the U.S., but according to the World Council of CreditUnions, it is likely to result in similar losses.

While FASB's proposed credit loss model would require creditunions to recognize losses expected over the lifetime of a loan orasset, the IASB's approach would only require provisioning for 12months' worth of losses.

Nonetheless, the World Council said in its July 5 commentletter, the international credit union trade association said itquestions the need to move from the current incurred loss standardsto the expected loss model.

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