CA ANZ and CPA Australia have provided some preferred approaches to address a variety of complex accounting issues faced by NFPs worldwide. The joint submission was in response to Part 2 of the IFRS for Non-Profit Organisations (IFR4NPO) consultation paper (CP) on the development of internationally applicable financial reporting guidance for NFPs. Part 1 of the paper set out the broad principles for the development of this guidance and was the subject of a similar joint submission in July 2021. Part 2 then addressed some specific transactions, events and balances the accounting guidance planned to cover.
Our submission supported the identification of key issues included in the CP and the discussion of these issues, including the identification of various accounting policy choices. Our selections from these options were based on our overall support for the use of the IFRS for SMEs standard as a starting point for the project, as well as the need to support simplifying accounting requirements to meet the needs of both users and preparers. We also suggested several additional topics that we felt the guide should also contain, such as consolidation, leases, simple financial instruments and related parties.
We also recommended that, in producing the guide, consideration is given to articulating the fundamental accounting principles being applied, similar to Chapters 1 and 2 of IFRS for SMEs as this will be important if the Guide is to function in isolation.
Submission on International Financial Reporting for Non-Profit organisations Part 1
In a joint submission CA ANZ and CPA Australia have supported initial proposals for the development of internationally applicable financial reporting guidance for NFPs.Read more
IFR4NPO consultation document
The publication of this Consultation Paper gives non-profit organisations (NPOs) the opportunity, for the first time, to contribute to the development of international financial reporting for their sector.Read more