Non-profit organisations also have some types of transactions that are uncommon in other sectors. That’s why the UK developed specific financial reporting recommendations for charities, to reflect their business and the needs of readers. About 20 countries have their own national approach, but inevitably, there are differences between them. The IFR4NPO project is developing new Guidance, which can be adopted by any country if they choose.
In the UK, it will be incredibly helpful to have an internationally accepted framework that has been contributed to by our stakeholders. We can then look at opportunities to better align our practices with the Guidance to reap the benefits of international consistency, while also accommodating our particular needs and laws, as needed.
John Bernstein, Vulcan Inc, USA, IFR4NPO Steering Group