Annual Returns: Common Mistakes – Balance Sheet

The balance sheet contains all of the assets and liabilities of the credit union. This section provides the regulator details about the credit union’s capital position, bad debt provisioning and split of shares to allow the regulator to monitor compliance with prudential regulations.

3 Common Mistakes

#1 Listing bank account funds as ‘Cash Deposits’

Cash deposits should only include the physical cash held by the credit union.

#2 Including juvenile deposits in members’ shares and non-deferred shares

It’s easy to forget that juvenile deposits are not a type of share and this amount needs to be excluded from member share balances.

#3 Not including arrears over 12 months

Since the introduction of FRS102, credit unions should no longer ‘write off’ loans until the credit union is no longer legally entitled to the debt. Whilst many credit unions focus on up to 12 months of arrears in their management information, they still need to provide the complete amount of arrears outstanding over 12 months to the regulator.

Examples