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Accounting Standards for Private Sector Not-for-Profit Organizations

Contributions – Revenue Recognition and Related Matters


The AcSB proposes, subject to comments received following exposure, to issue new Section 4411, Contributions Received by Not-for-Profit Organizations and accompanying amendments to Section 4400, Financial Statement Presentation by Not-for-Profit Organizations, in Part III of the CPA Canada Handbook – Accounting (the Handbook). Proposed Section 4411 provides not-for-profit organizations (NFPOs) with guidance on accounting for contributions and would replace Section 4410, Contributions – Revenue Recognition and Section 4420, Contributions Receivable.

Staff Contact(s)

Katharine Christopoulos, CPA, CA Director, Accounting Standards Board


In May 2015, the AcSB approved a research project to understand current Canadian and international practices for recognizing revenue from contributions. In January 2016, the Board created its Not-for-Profit Advisory Committee (the Committee) to assist with maintaining and improving accounting standards for NFPOs. 

After completing the research phase of this project, in May 2020, the AcSB issued the Consultation Paper, “Contributions – Revenue Recognition and Related Matters,” to obtain input from stakeholders on the accounting for contributions and related matters. The Consultation Paper did not propose specific solutions but sought feedback from stakeholders on the issues they faced in accounting for contributions and related matters, as well as potential solutions. 

In response to stakeholder input on the Consultation Paper, in March 2022, the AcSB decided to proceed with a standard-setting project to amend the guidance in Part III of the Handbook for contributions and related matters.