The Not-for-Profit Advisory Committee’s purpose is to assist the Accounting Standards Board (AcSB) on maintaining and improving the accounting standards for not-for-profit organizations (NFPOs) in Part III of the CPA Canada Handbook – Accounting and in identifying the need for non-authoritative guidance about the standards. The Committee makes recommendations to the AcSB but is not authorized to interpret or provide authoritative guidance on accounting standards for NFPOs.
This document has been prepared by the staff of the AcSB and is based on discussions during the Committee’s meeting. The meeting notes do not necessarily represent the views of the AcSB and nothing in them constitutes authoritative guidance on acceptable or unacceptable application of accounting standards for NFPOs. Only the AcSB can make such a determination.
Cloud Computing Arrangements
The Not-for-Profit Advisory Committee discussed a fact pattern that consists of various expenditures an entity might incur to implement a cloud computing arrangement. The Committee provided feedback on the staff’s analysis of the accounting treatment for each of the expenditures described in the fact pattern. In addition, the Committee considered the economic substance of the expenditures and discussed whether the accounting treatment provides decision-useful information to users of not-for-profit financial statements.
The AcSB will consider the Committee’s feedback, as well as feedback from its Private Enterprise Advisory Committee, at a future Board meeting.
Combinations
The Committee continued discussing stakeholder feedback on the Exposure Draft, “Combinations – Initial Measurements and Related Disclosures.” The Committee advised the AcSB:
- that the difference between the consideration transferred and net assets acquired should be accounted for in net assets instead of the statement of operations; and
- the standard should apply on a prospective basis with an option to apply it to combinations that occurred in previous periods.
The Committee also provided the AcSB staff with comments to clarify the standard.