The accounting basis used in the Guidance – accrual, cash or modified – needs to ensure that non-profit organisation (NPO) stakeholders’ needs are met in the simplest way possible.
The Consultation Paper has a core premise that the Guidance will be for financial statements prepared on an accrual basis for reasons explained. But some donors require cash basis reports and some NPOs may lack capacity.
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To get a more in depth understanding of our thinking about accounting basis, read the IFR4NPO Consultation Paper Part 1: Chapter 3 available here
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