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Accounting Standards for Private Sector Not-for-Profit Organizations

Contributions – Revenue Recognition and Related Matters

Summary

This project is being undertaken in response to the feedback from private sector stakeholders to the April 2013 AcSB/PSAB joint Statement of Principles, “Improvements to Not-for-Profit Standards.”

This project considers the improvements needed to the guidance on accounting for contributions and related topics by not-for-profit organizations (NFPOs) in Part III of the CPA Canada Handbook – Accounting.

This project considers topics such as: 

Staff Contact(s)

Grace Flis, CPA, CA Principal, Accounting Standards Board

Phone number  +1 416 204 3478
Email address  [email protected]
Danielle MacLeod, CPA, CA Principal, Accounting Standards Board

Phone number  +1 416 204 3951
Email address  [email protected]

Project Status

  • Information gathering

    The AcSB issued its Consultation Paper in May 2020

    The AcSB is developing proposals to improve the guidance on accounting for contributions and related topics

  • Approving project

    In March 2022, the AcSB approved a project to develop an Exposure Draft

  • Consulting stakeholders
  • Deliberating feedback

    The AcSB deliberated feedback on its Consultation Paper March 2021-January 2022

  • Final pronouncement

News

December 15, 2020 News
Comment Deadline Extended – AcSB Consultation Paper, Contributions – Revenue Recognition and Related Maters

The AcSB has extended the deadline to submit a comment letter from December 15, 2020 to December 31, 2020 for the Consultation Paper, Contributions – Revenue Recognition and Related Matters.

November 23, 2020 News
Connect with us – Consultation Paper, Contributions – Revenue Recognition and Related Matters

Easily share your feedback on the Consultation Paper, Contributions – Revenue Recognition and Related Matters via quick polls, short surveys, or an open forum on our new online community platform, Connect.FRASCanada.ca. Register today!

June 8, 2020 Resource, In Brief
In Brief – Consultation Paper, Contributions – Revenue Recognition and Related Matters

The AcSB is committed to improving accounting standards for NFPOs, recently releasing its Consultation Paper, Contributions – Revenue Recognition and Related Matters. This Paper aims to gather feedback from NFPO stakeholders on the challenges of applying the existing contributions guidance. Read this In Brief for more about the Paper and how to provide the AcSB feedback on this important topic.

Meeting & event summaries

March 2, 2023 AcSB Decision Summary – February 15, 2023

The AcSB discussed and approved an outreach and communications plan for the exposure draft on recognition of contributions and related matters. The Board plans to issue the exposure draft at the end of March 2023.

February 15, 2023 Not-for-Profit Advisory Committee Meeting Notes – January 31, 2023

The Not-for-Profit Advisory Committee received an update on the AcSB’s recent decisions in response to feedback received from the Committee’s fatal flaw review of exposure draft proposals. The Committee recommended wording clarifications to the proposed requirement to disclose information about the availability of an organization’s financial and other assets to meet its requirements related to restricted contributions.

The Committee also provided input on the communications and outreach plan for the exposure draft. The AcSB will consider the Committee’s feedback on the communications and outreach plan at its meeting on February 15, 2023. The Board plans to issue the Contributions exposure draft in March 2023.

February 7, 2023 AcSB Decision Summary – January 26, 2023

The AcSB discussed the results of a fatal flaw review of the exposure draft completed by members of its Not-for-Profit Advisory Committee and provided feedback on a revised draft. The Board discussed some wording changes to clarify:

  • that an external restriction must be explicitly communicated between the contributor and the organization before or at the time the contribution is made;
  • that the recognition guidance should be applied to each individual pledge for the recognition of pledges; and
  • the proposed disclosure requirement related to availability of financial assets to meet an organization’s requirements related to restricted contributions.

The AcSB gave permission to begin the balloting process. The Board will discuss an outreach and communications plan for the exposure draft at its meeting in February 2023 and plans to issue the exposure draft in March 2023.

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.