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AcSB

Global Initiative to Develop Financial Reporting Guidance for Not-for-Profit Organizations (#IFR4NPO) 

International Activity, News

Summary

The staff of the Accounting Standards Board (AcSB) is participating in a global initiative to develop non-authoritative financial reporting guidance for not-for-profit organizations (NFPOs) in jurisdictions that, unlike Canada, currently do not have NFPO accounting standards.

The first in a series of three Exposure Drafts of International Non-Profit Accounting Guidance (INPAG) has recently been issued. For more information on the first Exposure Draft and how to provide your feedback, visit the IFR4NPO website.

This staff’s involvement in this initiative is part of the AcSB’s strategy to contribute to global best practices in accounting standard setting.

Staff Contact(s)

Katherine Knowlton, CPA, CA Associate Director, Accounting Standards Board

Phone number  +1 416 204 3332
Email address  [email protected]

About the #IFR4NPO initiative

The International Financial Reporting for NFPOs (#IFR4NPO) initiative is a five-year project coordinated by Humentum and the Chartered Institute of Public Finance and Accountancy (CIPFA). The goal is to develop non-authoritative financial reporting guidance for NFPOs internationally to meet the needs of their financial statement users, including funders and regulators. The focus of INPAG is jurisdictions that currently do not have accounting standards for NFPOs. INPAG would only become authoritative in a particular jurisdiction if action is taken by the relevant national standard-setter.

What is the AcSB’s role in this initiative?

The AcSB’s role in this initiative includes the contribution of staff time and other resources to develop guidance. The AcSB does not have any plans to adopt INPAG but will consider any relevant learnings from this project as it makes improvements to Part III of the CPA Canada Handbook – Accounting.

Developing #IFR4NPO

This initiative is planned as a three-phase project. This first phase, Consultation, was completed in January 2022. The project is now in the Exposure Draft phase:

A timeline showing the planned activities of the three-phase project, from January 2022 through Mid 2025. The Part 1 ED (expected in Q4 2022) will address mainly framing. The Part 2 ED (expected in Q3 2023) will address mainly accounting. The Part 3 ED (expected in H1 2023) will address mainly presentation.

There are two advisory groups involved in the tactical development of the guidance:

  • Technical Advisory Group (TAG):This Group consists of representatives from national standard setters, including one of the AcSB’s staff. The TAG brings expertise in NFPOs and their financial reporting needs to the development of this guidance. Meetings will be in public and all formal minutes and communications will be available online.
  • Practitioner Advisory Group (PAG):This Group consists of NFPOs, funders, regulators, governments, auditors, and professional accountancy bodies. The PAG will provide input into the TAG to ensure that a representative cross-section of those impacted is considered when developing relevant and decision-useful guidance for users of NFPO financial statements across the globe.

Members from the TAG and PAG represent more than 15 different countries, and six continents. A project steering group has oversight of the initiative and consists of members from the International Federation of Accounting Standard Setters, Humentum, CIPFA, NFPOs, and key project funders.

Stay up to date

  • Register for updates on this initiative online.
  • Stay tuned for the further project updates via the AcSB’s website.