A public consultation, launched January 28 2021 by CIPFA and Humentum, gives non-profit organisations (NPOs) and their stakeholders the opportunity, for the first time, to contribute to the development of global financial reporting guidance.
The consultation, which is part of the International Financial Reporting for Non-Profit Organisations (IFR4NPO) initiative, will consider views from all over the world, including finance staff and NPO senior leaders, as well as funders, regulators, auditors, banks and members of the public.
While international reporting standards have been developed for the private and public sectors, the future IFR4NPO guidance will resolve the current absence of an international reporting standard specific to the non-profit sector.
Karen Sanderson, CIPFA Head of Programme, IFR4NPO, said:
“CIPFA is proud to be working with Humentum to address long-standing accounting issues in the global non-profit sector. This long-awaited project will produce consistent financial reporting guidance for NPOs all over the world. Today’s consultation puts us one step closer towards putting that guidance into practice.
“We encourage anyone with an interest in financial best practice in the non-profit sector to come forward and make their views known.”
The consultation will be open for comments on general financial reporting issues until 30 July 2021, and for sector-specific accounting issues until 24 September 2021.
Samantha Musoke, Humentum Project Director, IFR4NPO, said:
“It is so important to hear different perspectives from around the world so that the guidance can be useful and relevant for preparers and users. We have worked hard to make it as easy as possible to access and respond to the consultation paper so that even those who have never responded to an accounting standard consultation before can do so.”
Notes to editors:
The IFR4NPO consultation paper can be accessed here.
IFR4NPO is a five-year initiative, led jointly by CIPFA and Humentum, to develop the world’s first internationally applicable financial reporting guidance for non-profit organisations (NPOs). The future guidance will improve the clarity and consistency of NPO financial reports, resulting in greater credibility and trust in the not-for-profit sector globally. More information on the project is available here.
CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. CIPFA shows the way in public finance globally, standing up for sound public financial management and good governance around the world as the leading commentator on managing and accounting for public money.
*This press release was first published by CIPFA 28/01/2021