Having separate funds enables NPOs to track the receipt and use of resources, according to their intended use. Fund accounting is essential for the transparency and accountability for an NPO’s funds.
This video explains the proposals relating to Fund accounting in International Non-Profit Accounting Guidance, Exposure Draft 3 (INPAG ED3).
Until Exposure Draft 3, the issue of fund accounting was addressed under the heading ‘financial statement presentation’. Initial ideas were set out in the Consultation Paper issued in January 2021, together with explanatory videos. Part 2 Issue 7 of the Consultation Paper set out specific alternative approaches which were presented in a webinar in Aug 2021, before the consultation response period closed in Oct 21. In November 2022, Exposure Draft 1 included proposals for financial statements presentation. In September 2023, Exposure Draft 2 included proposals for recognition of grant revenue, making it clear that restrictions or use constraints were not sufficient to warrant income deferral. In May 2024, Exposure Draft 3 included a new section specifically on fund accounting.
You can access all the resources from this page with the most recent first. Some are available in Spanish (ES) and French (FR) as well as English.
