MADISON, Wis. — In response to issues raised by global financial organizations, including World Council of Credit Unions (WOCCU), the International Accounting Standards Board (IASB) is seeking clarification from credit unions and other financial services providers in emerging and transition economies on issues surrounding fair value measurements as described in the current International Financial Reporting Standards (IFRS) draft. WOCCU is asking its member organizations to share examples of situations in which the requirement to use fair value accounting may be impractical for credit unions.
Last September, WOCCU submitted a comment letter to IASB strongly supporting the board's reassessment of fair value measurement in light of the ongoing global economic recession. WOCCU specifically raised issues on the unintended consequences the standards may have had on some financial cooperatives and their restrictive influence on institutional mergers. IASB last week contacted WOCCU and other organizations asking for input, specifically "examples and case studies of transactions or situations...that would make the fair value measurement guidance as proposed in the exposure draft impractical."
"We're pleased IASB is reconsidering its position and has come back to WOCCU requesting information to help them craft a better standard," said Dave Grace, WOCCU vice president of association services and author of September's letter. "I am asking our entire membership for examples in which fair value standards have proved impractical for credit unions."
In its response to WOCCU, IASB cited concerns that:
Final comments are due to IASB Jan. 31, after which the board will evaluate and consider amending inadequate proposals in the exposure draft and issuing educational materials covering application of the fair value measurement principles. All WOCCU member input should be submitted to Grace at email@example.com no later than Jan. 28 for compilation and distribution to IASB.
World Council of Credit Unions is the global trade association and development agency for credit unions. World Council promotes the sustainable development of credit unions and other financial cooperatives around the world to empower people through access to high quality and affordable financial services. World Council advocates on behalf of the global credit union system before international organizations and works with national governments to improve legislation and regulation. Its technical assistance programs introduce new tools and technologies to strengthen credit unions' financial performance and increase their outreach.
World Council has implemented more than 290 technical assistance programs in 71 countries. Worldwide, 57,000 credit unions in 105 countries serve 217 million people. Learn more about World Council's impact around the world at www.woccu.org.