Accounting Standards Board
The Institute of Chartered Accountants of India
17th January, 2023
Exposure Draft of the International Non-Profit Accounting Guidance (INPAG)- Part 1
Non-Profit organizations (NPOs) have grown by leaps and bounds with larger magnitude. In view of their growing significance, ensuring accountability and transparency for NPOs becomes important. Sound financial reporting aids in ensuring accountability and transparency for NPOs. Quality of financial reporting depends on recognition, measurement, presentation and disclosure principles.
At international level, it has been recognized that the preparation of financial statements by NPOs is crucial for accountability and decision-making and for trust and confidence in NPOs. However, there are no international standards guiding NPOs on how to prepare their financial statements. Recently, the first Exposure Draft of International Non-Profit Accounting Guidance (INPAG) has been issued by Chartered Institute of Public Finance and Accountancy (CIPFA) for public comments to be received by March 31, 2023 to create specific financial reporting guidance for NPOs. After considering the feedback on this Exposure Draft, two more Exposure Drafts will be issued which collectively comprise INPAG.
With the view to contribute to standard setting at international level, the Exposure Draft of the International Non-Profit Accounting Guidance (INPAG)- Part 1 issued by the IFR4NPO, has been hosted on the website of the Institute of Chartered Accountants of India (www.icai.org) for public comments with last date as February 17, 2023.
The same can be assessed at the following link: https://resource.cdn.icai.org/72678asb58594.pdf
How to comment
Comments on the abovementioned ED may be submitted through any of the following modes: :
1. Electronically: Click on http://www.icai.org/comments/asb/ to submit comment online (Preferred method)
2. Email: Comments can be sent to: [email protected]
3. Postal : Secretary, Accounting Standards Board,
The Institute of Chartered Accountants of India,
ICAI Bhawan, Post Box No. 7100,
Indraprastha Marg, New Delhi 110 002
| 1. Electronically: | Click on http://www.icai.org/comments/asb/ to submit comment online (Preferred method) |
| 2. Email: | Comments can be sent to: [email protected] |
| 3. Postal | Secretary, Accounting Standards Board, The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi 110 002 |
Further clarifications on this Exposure Draft may be sought by e-mail to [email protected]
International Non-Profit Accounting Guidance Part 1 Exposure Draft
Summary
Overview
Objective: Develop the first ever international financial reporting guidance for Non-Profit Organisations (NPOs).
Proposal: The IFR4NPO project sought views, via a Consultation Paper issued in January 2021, on the proposal that the IFRS for SMEs Accounting Standard be used as the basis for a single set of authoritative guidance for NPOs.
Having taken account of the feedback from the consultation, adaptations to IFRS for SMEs are being proposed to create International Non-Profit Accounting Guidance (INPAG) as NPO specific financial reporting guidance.
Next steps: The INPAG Secretariat will consider feedback on this Exposure Draft in the development of the remaining two Exposure Drafts that will collectively comprise INPAG.
Deadline for comments: 31 March 2023
Documents to be reviewed
ED1 – Authoritative Guidance
ED1 – Basis for Conclusions
ED1 – Implementation Guidance
Introduction
Background to INPAG
In many countries, Non-Profit Organisations (NPOs) have no guidance or frameworks to support the preparation of financial statements. These are crucial for transparency, accountability and decision making. Funding organisations have filled this void by developing their own reporting requirements for NPOs. While all have their merits, the variety of different requirements can create a heavy burden on the very organisations they want to support.
Private and public sector entities and their stakeholders have benefited greatly from the development and use of international standards since the 1970s. In a 2014 international survey, which had more than 600 responses from 179 countries, the majority of respondents agreed or strongly agreed that an international accounting standard, or guidance specifically for NPOs, would be useful.
A consultation paper was issued in January 2021, setting out proposals to develop high-quality, trusted, internationally-recognised financial reporting guidance for NPOs (now called INPAG). It sought feedback on a number of proposals including priority topics. There was overwhelming support for the development of INPAG and the proposals set out in the document.
Read Full at below link :
http://asbcomment.icai.org/documents/eff2c5d9852d96328510af5d2751cc6a.pdf
