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.
The preparation of financial statements is crucial for accountability and decision-making and for trust and confidence in NPOs. However, there are no common international accounting standards for NPOs, unlike in the private and public sectors. Only a few jurisdictions have developed guidance that address the unique characteristics of NPOs and the types of transactions they undertake.
Feedback to this Consultation Paper will shape the future of financial reporting in this important but diverse sector. See how to respond here.