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In February 2017, the Accounting Standards Board (AcSB) issued an Exposure Draft, entitled “Accounting Standards Improvements for Not-for-Profit Organizations.”
A Not-for-Profit Organization (NPO) will be affected if it owns tangible capital assets, intangible assets or collections. The specific changes to the NPO Exposure Draft are as follows:
- Collections to be presented on the statement of financial position, resulting in an NPO selecting an accounting policy to either record the collections at cost or at a nominal value.
- Tangible capital assets or intangible assets to be assessed for conditions that may indicate an impairment, which may result in the items being written down to fair value or replacement cost.
- Requirement to follow the specific guidance on componentization as found within Section 3061, Property, Plant, and Equipment, of the CPA Canada Handbook
The AcSB is welcoming comments on the Non Profit Organizations Exposure Draft until May 31, 2017. A full copy of the exposure draft is located at: http://www.frascanada.ca/standards-for-not-for-profit-organizations/documents-for-comment/item83928.pdf
The proposed date of effect for the NPO Exposure Draft would be for fiscal years beginning on or after January 1, 2019.
If you still have questions about these new Accounting Standards Board rules regarding the Non Profit Accounting Exposure Draft, contact your Not-for-Profit advisor at Manning Elliott LLP and we would be happy to assist you in navigating these complex accounting issues.
Navroz Janmohamed, CPA, CA is a Partner at Manning Elliott LLP. He advises privately held businesses, not-for-profit organizations (NPOs) and registered charities on a wide range of income tax planning and tax compliance matters. To contact Navroz, feel free to call him at 604-714-3622 or email him at email@example.com
The above content is believed to be accurate as of the date of posting. Tax laws are complex and are subject to frequent changes. Professional advice should be sought before implementing any tax planning. Manning Elliott LLP cannot accept any liability for the tax consequences that may result from acting based on the information contained therein.