Credit Union Annual Report 2022 - Flipbook - Page 46
THE CAYMAN ISLANDS CIVIL SERVICE ASSOCIATION (CICSA)
CO-OPERATIVE CREDIT UNION LIMITED
NOTES TO FINANCIAL STATEMENTS (continued)
July 31, 2022
2.2 Significant accounting judgments and estimates (continued)
•
The segmentation of financial assets when their expected credit loss (ECL) is assessed on a collective basis
•
Development of ECL models, including the various formulas and the choice of inputs
•
Determination of associations between macroeconomic scenarios and, economic inputs, such as unemployment
levels and collateral values, and the effect on PDs, exposure at default (EAD) and loss given default (LGD)
•
Selection of forward-looking macroeconomic scenarios and their probability weightings, to derive the economic
inputs into the ECL models
It has been the Credit Union’s policy to regularly review its models in the context of actual loss experience and adjust
when necessary.
2.3 Changes in accounting policies and disclosures
Standards in issue not yet effective
The following is a list of standards and interpretations that are not yet effective up to the date of issuance of the Credit
Union's financial statements. These standards and interpretations will be applicable to the Cr edit Union at a future date
and will be adopted when they become effective. The Credit Union is currently assessing the impact of adopting these
standards and interpretations.
IAS 1 Presentation of Financial Statements - Amendments to IAS 1 (effective Janu ary 1, 2023)
The IASB issued amendments to paragraphs 69 to 76 of IAS 1 Presentation of Financial Statements to specify the
requirements for classifying liabilities as current or non-current.
The amendments clarify:
•
What is meant by a right to defer settlement
•
That a right to defer must exist at the end of the reporting period
•
That classification is unaffected by the likelihood that an entity will exercise its deferral right
•
That only if an embedded derivative in a convertible liability is itself an equity instrument, would the terms of a
liability not impact its classification
In February 2021, the IASB issued amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements
(the PS), in which it provides guidance and examples to help entities apply materiality judgements to accounting policy
disclosures.
The amendments aim to help entities provide accounting policy disclosures that are more useful by:
Replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose
their ‘material’ accounting policies and Adding guidance on how entities apply the concept of materiality in making
decisions about accounting policy disclosures.
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