IFR4NPO seeking comments to shape the future of financial reporting for Non-Profit Organisations (NPOs)
This is a first public consultation calling all interested parties to contribute to the development of the world’s first internationally applicable Financial Reporting Guidance for Non-Profit organisations (“the Guidance”). Led by CAPA member CIPFA, the Chartered Institute of Public Finance and Accountancy in UK, and jointly with Humentum, this five-year initiative is designed to shape the future of this important but diverse sector as there are currently no common international accounting standards and financial reporting requirements for NPOs.
The IFR4NPO project aims to respond to these issues by strengthening NPO governance and financial management through development of the Guidance. The Guidance will be developed to meet the following three objectives:
- Objective 1: To improve the quality, transparency and credibility of NPO financial reports.
- Objective 2: To support the provision of NPO financial information that is useful for decision making and accountability, balancing the needs of preparers and users.
- Objective 3: To address specific NPO issues, which will promote the comparability of NPO financial reports.
A consultation paper was recently issued, calling for NPOs and their stakeholders to contribute to the development of the upcoming guidance. The consultation paper is the first output from the Guidance development process and is intended to raise awareness and understanding of the project and the issues it will address, as well as to provide focus and vehicle for stakeholder input.
The comment period is open until 30 July 2021 for generic financial reporting issues facing the sector and the proposed way forward (Part 1), and is open for an additional two months for comments on specific financial reporting issues (Part 2), until 24 September 2021.