Not-for-profit financial reporting braced for improvement
Australian stakeholders have been given a valuable resource in the form of a new report to identify further improvements to not-for-profit financial reporting, particularly in the public sector.
The report provides a comprehensive analysis and comparison between the Australian Accounting Standards Board (AASB) and the International Public Sector Accounting Standards Board (IPSASB).
The IPSASB issues standards based on the International Financial Reporting Standards for NFP public sector entities such as local councils and government departments.
The report aims to identify areas in the Australian accounting standards that could be considered by the AASB for further modification, guidance and examples to better meet the needs of the NFP sector.
“The AASB is responsible for ensuring accounting standards meet the objectives of financial reporting for all entities,” said AASB chair Kris Peach.
“The AASB’s agenda consultation and IFRS review projects identified the need to consider whether further modifications, guidance and examples are warranted for the NFP sector and we want to take action on this. This report will be used as a basis for informed discussion on how we can further assist the NFP sector.”
The AASB noted that the comparison with IPSASB was appropriate because the public sector made up a substantial number of Australian NFP entities, as well as their applicability to private sector NFPs.