The AASB has a number of open consultations on areas affecting NFP entities and has developed a number of tools for these entities to provide feedback. We encourage all of our NFP clients to consider completing the surveys referred to below to have your voice heard on these projects.
Simplified accounting for certain NFP entities
The AASB has released a discussion paper and supporting materials which proposes a third tier of accounting standards for NFP entities – the AASB will not define the parameters for this third tier since this is the remit of the regulators and legislators (e.g., ACNC and Treasury), however the common transactions of NFP entities with revenue between $500k and $3m was considered in developing the proposals.
The proposals include a number of areas of simplification which should reduce time and costs spent by NFP in preparing for the year-end financial statements. Some key aspects have been discussed below:
If you want to engage with the AASB on this project, we encourage you to read the AASB snapshot and complete the AASB survey. Alternatively, the AASB are holding virtual and face to face outreach sessions (details here).
Post-implementation reviews (PIR) on a range of NFP domestic pronouncements
A PIR is the opportunity for the AASB to seek feedback from stakeholders once a pronouncement has been operating for a certain period to conclude on its overall effectiveness, efficiency and appropriateness.
The AASB has commenced a PIR process by issuing Invitations to Comment (ITCs) for the following NFP requirements:
- Income of Not-for-Profit Entities – AASB 1058 and Appendix F of AASB 15
- Control and consolidation – Appendix H of AASB 10
- Structured entities – AASB 12
- Disclosures in special purpose financial statements – AASB 1054
- Related party disclosures (public sector only) – AASB 124
The ITCs include known issues and provide opportunities for feedback on those issues as well as other concerns.
Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.