Page 9 - FULL MAGAZINE - KUSCCO.indd

Courtesy ICPAK SACCO INDUSTRY WATCH

Impairment. IFRS-9 introduces an ‘expected credit loss’ model for the The partnership with ICPAK is
LD@RTQDLDMSNESGDHLO@HQLDMSNE?M@MBH@K@RRDSRRNHSHRMNKNMFDQMDBDRR@QX aimed at ensuring a wider reach
for a credit event to have occurred before a credit loss is recognised. of the SACCOs in the market to
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liabilities are carried forward from IAS 39. the new standard.
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SGDQD@QDCH?DQDMBDRHMSGDQDPTHQDLDMSR@OOKXHMFSNSGDLD@RTQDLDMSNE@M What has ICPAK done
entity’s own credit risk. WRLQ? XHQFH6$65$WKH
regulator on adoption of
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provision for credit losses. ICPAK is the regulator of the
accounting profession in Kenya
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in the country.
ICPAK is a member of the International Federation Of Accountants (IFAC), the umbrella The two regulators have been
body of Professional Accounting Organisations. It is through the various standard setting working jointly to ensure that
boards under IFAC that new standards are issued and all the member organisations SGDMDVRS@MC@QCHRD?DBSHUDKX
champion the implementation and roll-out of those standards. ICPAK is leading this implemented in the Kenyan
drive for IFRS-9 implementation in Kenya. Additionally, ICPAK has the requisite technical market. While ICPAK is keen on
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20,000. implementation of IFRS standards
in the market, SASRA on the other
:K\GLG,&3$.FKRRVHWRSDUWQHUZLWK.86&&2RQSURELQJ6$&&2V hand issues prudential guidelines
to adopt the standards? which must be complied with
by the SACCOs. Any areas of
ICPAK is the local entity which is charged with the responsibility of adopting and divergence are harmonized
implementing accounting and auditing standards within the Kenyan market. KUSCCO on through a process of reconciliation
the other hand is the umbrella body for SACCOs in Kenya. to ensure compliance with both
the IFRS framework and the
prudential guidelines.
SASRA was also represented in
the IFRS-9 Technical Work group
which developed the IFRS-9
Implementation Guideline.

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implementation of IFRS-
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SACCOs?

Implementation of IFRS-9 will lead
to an increase in provisioning for
losses which by extension leads to
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for distribution. This creates an
impact on the interest on rebates
and deposits which is paid out to

SACCO Star Magazine |7