Joint submission to the AASB on ITC 51 Not-for-Profit Topics
Feedback on control, structured entities, related party disclosures and special purpose financial statements’ basis of preparation
The AASB is undertaking a post-implementation review (PIR) on the following four not-for-profit (NFP) topics:
- Control and consolidation for NFP entities
- Definition of a structured entity for NFP entities
- Related party disclosures by NFP public sector entities
- Basis of preparation of special purpose financial statements – disclosures about compliance with AASB standards
In a joint submission, CA ANZ and CPA Australia recommend the AASB focuses its efforts on developing the Simplified Accounting Requirements (Tier 3 Standard for NFP Private Sector Entities). We believe this standard will reduce the number of NFP entities attempting to implement the current requirements, allowing a clearer picture of what the issues are and how best to resolve them.
Topic 1, 2 and 4
Despite some of the implementation concerns outlined in the ITC, the feedback we received indicates that there is no need for any standard-setting activities to address these concerns.
Topic 3
The feedback we received indicates the challenges being encountered is primarily due to the nature of the related party relationships in the NFP public sector, rather than it being related to deficiencies in the standard’s requirements.
