Existing Standards for NFPs

Financial reporting by NFPs can differ dependent on the existence of a financial reporting framework specific to NFPs.
  

This section focuses on the accounting standards and reporting frameworks which are applicable to NFPs within each jurisdiction.

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Australia

Do reporting standards for NFPs exist?

What financial reporting standards are currently applied in the preparation of the financial statements of NFPs?

The AASB’s Australian Accounting Standards, which are largely based on IFRS with some NFP-specific modifications.


Do specific financial reporting standards exist for NFPs in the jurisdiction?

Yes.


Are these specific standards for NFPs, or are they included within the scope of a wider standard which are applicable to other organisations?

Included within the scope of Australian Accounting Standards, which apply in general to both for-profit and not-for-profit entities, whether in the private sector or the public sector.


Where can the financial reporting requirements for NFPs be found?

In Australian Accounting Standards. 


Canada

Do reporting standards for NFPs exist?

What financial reporting standards are currently applied in the preparation of the financial statements of NFPs?

Private sector not-for-profit organizations (NFPOs) are required to adopt accounting standards for NFPOs (ie Part III of the CPA Canada Handbook- Accounting) when they prepare general purpose financial statements.  Alternatively, private sector NFPOs may choose to adopt International Financial Reporting Standards(IFRSs).

Public sector (government) NFPOs are required to adopt the CPA Canada Public Sector Accounting (PSA) Handbook, either with or without the standards specific to NFPOs (Sections PS 4200 to PS 4270).


Do specific financial reporting standards exist for NFPs in the jurisdiction?

Yes.

For private sector NFPOs Part III of the CPA Canada Handbook- Accounting.

For public sector (government) NFPOs Sections PS 4200 to PS 4270 in the CPA Canada Public Sector Accounting (PSA) Handbook.


Where can the financial reporting requirements for NFPs be found?

For private sector NFPOs: Part III of the CPA Canada Handbook – Accounting only applies to NFPOs.  Part III deals with matters that are unique to NFPOs or with issues where the needs of financial statement users indicate that different requirements from those that apply to profit-oriented enterprises are appropriate. However, NFPOs also apply accounting standards for private enterprises in Part II of the CPA Canada Handbook – Accounting for transactions that have similar characteristics to private enterprises, which enhances comparability between NFPOs and private enterprises. 

For public sector NFPOs: Sections PS 4200 to PS 4270 in the CPA Canada Public Sector Accounting (PSA) Handbook only applies to public sector (government) NFPOs. These Sections, PS 4200 to PS 4270 address matters that are unique to government NFPOs or with issues where the needs of financial statement users indicate that different requirements from those that apply to other government organizations are appropriate.  However, government NFPOs also apply the CPA Canada Public Sector Accounting Handbook for transactions that have similar characteristics to other public sector organizations.  Applying Sections PS 4200 to PS 4270 is optional.

CPA Canada Handbook - Accounting and CPA Canada Public Sector Accounting (PSA) Handbook.

Colombia

Do reporting standards for NFPs exist?

What financial reporting standards are currently applied in the preparation of the financial statements of NFPs?

It depends of the group to which the NFPO belongs. If it belongs to Group 3, it means it is a micro size entity (assets <US$120.000, income <US$1.430m and less than ten employees), applies a national standard; if it is part of Group 2, it applies IFRS for SME and if it belongs to Group 1, applies full IFRS. Group 1 is formed for big entities  with some special requirements related to international origin of its income or international destiny of its expenses and investment relationships with other entities belonging to Group 1, and public interest entities.

Big entities for these purposes in Colombia are those with assets more than US$7.170m or more than 200 employees.


Do specific financial reporting standards exist for NFPs in the jurisdiction?

No.


Where can the financial reporting requirements for NFPs be found?

Accounting regulation is issued through presidential decrees.


France

Do reporting standards for NFPs exist?

What financial reporting standards are currently applied in the preparation of the financial statements of NFPs?

Associations and foundations are required to implement the associations and foundations accounting plan (CRC regulation 99-01), based on the general accounting plan (ANC regulation n° 2014-03), when they meet one of the following conditions:
1. To exceed two of the three following thresholds:
a. Revenues: €3.1m
b. Total of balance sheet: €1.55m
c. 50 employees

2. To receive more than €153,000 public grants; or

3. To be a foundation recognised as being of public interest or a corporate foundation
4. To receive more than €153,000 donations that give right to tax relief
5. To be required by law or regulation to draw up annual accounts.

If they do not meet the conditions, the accounting regulation is optional (and widely used).

Please note that the specific accounting regulation for associations and foundations is currently under review (with 2018 as a goal).


Do specific financial reporting standards exist for NFPs in the jurisdiction?

Yes.


Are these specific standards for NFPs, or are they included within the scope of a wider standard which are applicable to other organisations?

Where associations and foundations meet the conditions noted above, they are required to implement the associations and foundations accounting plan (CRC regulation 99-01), based on the general accounting plan (ANC regulation n° 2014-03). This is a standard specific to NFPs.


Where can the financial reporting requirements for NFPs be found?

They are stipulated in the national legislation and also in ANC’s regulations endorsed by an order of the Finance Minister, justice Minister and Economy Minister published in the Official Journal of the French Republic. ANC’s regulations are also available on the ANC website.

The endorsement cannot modify the regulation as adopted by ANC.

New Zealand

Do reporting standards for NFPs exist?

What financial reporting standards are currently applied in the preparation of the financial statements of NFPs?

Registered charities are required to prepare financial statements in accordance with accounting standards issued by the External Reporting Board (XRB).
Not-for-profit entities that are not registered charities, that have general purpose financial reporting preparation requirements, also need to prepare financial statements in accordance with accounting standards issued by the XRB.


Do specific financial reporting standards exist for NFPs in the jurisdiction?

Yes.


Are these specific standards for NFPs, or are they included within the scope of a wider standards which are applicable to other organisations?

The External Reporting Board (XRB) has developed and issued the following suites of standards for NFP PBEs with requirements to prepare general purpose financial reports.
  • A set of Simple Format Reporting Accounting Standards applicable to not-for-profit PBEs with total annual expenses of NZD$2m or less that are not publicly accountable. 
  • A set of PBE Standards, based on International Public Sector Accounting Standards (IPSASs), for both public sector and NFP PBEs with total annual expenses of more than NZD$2m or that are publicly accountable.


Where can the financial reporting requirements for NFPs be found?

The statutory financial reporting requirements for registered charities are stipulated in the Charities Act 2005. The statutory reporting requirements for NFPs that are FMC (Financial Markets Conduct) reporting entities are stipulated in the Financial Markets Conduct Act 2013.

Currently, there are minimal reporting requirements for NFPs that are not registered charities and are not FMC reporting entities. Many of these NFPs are incorporated societies. The statutory reporting requirements for incorporated societies is in the process of being reviewed.


United Kingdom

Do reporting standards for NFPs exist?

What financial reporting standards are currently applied in the preparation of the financial statements of NFPs?

Charities are required to report under FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (UK-Irish GAAP).


Do specific financial reporting standards exist for NFPs in the jurisdiction?

Yes.


Are these specific standards for NFPs, or are they included within the scope of a wider standard which are applicable to other organisations?

They are included within the scope of a wider standard.

FRS 102 is designed to apply to the general purpose financial statements and financial reporting of entities, including those that are not constituted as companies and those that are not profit-oriented.

Within FRS 102 there are specific paragraphs which apply solely to ‘public benefit entities’. Charities are included within the definition of public benefit entities, as their primary objective is to provide goods or services for the general public, community or social benefit, and any equity is provided with a view to supporting the charity’s primary objectives, rather than with a view to providing a financial return to equity providers, shareholders or members.

Guidance for financial reporting by charities is contained in the ‘Statement of Recommended Practice – Accounting and Reporting by Charities’ (Charities SORP). This framework provides guidance for charities on how to apply FRS 102 Financial Reporting Standard applicable in the UK and Republic of Ireland (UK-Irish GAAP).

There are currently no plans to develop separate standards for NFPs in the UK and Ireland. The Charities SORP continues to interpret UK-Irish GAAP for NFPs.


Where can the financial reporting requirements for NFPs be found?

The reporting requirements for NFPs are stipulated in both national legislation and regulation.


USA

Do reporting standards for NFPs exist?

What financial reporting standards are currently applied in the preparation of the financial statements of NFPs?

If a non-governmental NFP is reporting under US GAAP, it would follow the general and NFP-specific financial accounting and reporting standards set by the FASB, which are contained in the FASB’s Accounting Standards Codification (ASC). NFP-specific guidance can be found in Topic 958 of the ASC, with incremental guidance in Topic 954 for nongovernmental NFP healthcare organisations.

Additionally, the GASB issues Statements of Governmental Accounting Standards that comprise the Codification of Governmental Accounting and Financial Reporting Standards applicable for governmental NFPs. (The FASB and GASB Codifications are two separate and distinct documents.)


Do specific financial reporting standards exist for NFPs in the jurisdiction?

For NFPs following US GAAP, the FASB and the GASB provide financial accounting and reporting standards throughout their respective Codifications.

As noted above, Topic 958 (and Topic 954 for nongovernmental NFP healthcare organisations) of the FASB’s Codification provides the specific, incremental guidance for nongovernmental NFPs. Governmental NFPs following US GAAP use financial accounting and reporting standards set forth by the GASB in its Codification of Governmental Accounting and Financial Reporting Standards.


Are these specific standards for NFPs, or are they included within the scope of a wider standard which are applicable to other organisations?

The broader FASB ASC contains general standards for all types of nongovernmental NFPs, while Topic 958 (and Topic 954 for nongovernmental NFP healthcare organizations) is additional, specific guidance for nongovernmental NFPs. Governmental NFPs following US GAAP use the standards set forth by the GASB in the Codification of Governmental Accounting and Reporting Standards, which include broader standards applicable to all state and local governmental entities as well as more specific standards.

While the FASB’s and GASB’s standards constitute authoritative guidance, the American Institute of Certified Public Accountants (AICPA) publishes additional, non-authoritative guidance (recommended practice) as part of their Audit & Accounting Guides for NFPs and Health Care Entities.


Where can the financial reporting requirements for NFPs be found?

Financial reporting requirements are found throughout the ASC with specific guidance for nongovernmental NFPs found in Topic 958 (and Topic 954 for nongovernmental NFP healthcare organisations) and the GASB’s Codification of Governmental Accounting and Financial Reporting Standards.



D

Do specific financial reporting standards exist for NFPs in the jurisdiction?

For NFPs following US GAAP, the FASB and the GASB provide financial accounting and reporting standards throughout their respective Codifications.

As noted above, Topic 958 (and Topic 954 for nongovernmental NFP healthcare organizations) of the FASB’s Codification provides the specific, incremental guidance for nongovernmental NFPs. Governmental NFPs following US GAAP use financial accounting and reporting standards set forth by the GASB in its Codification of Governmental Accounting and Financial Reporting Standards.


Do specific financial reporting standards exist for NFPs in the jurisdiction?

For NFPs following US GAAP, the FASB and the GASB provide financial accounting and reporting standards throughout their respective Codifications.

As noted above, Topic 958 (and Topic 954 for nongovernmental NFP healthcare organizations) of the FASB’s Codification provides the specific, incremental guidance for nongovernmental NFPs. Governmental NFPs following US GAAP use financial accounting and reporting standards set forth by the GASB in its Codification of Governmental Accounting and Financial Reporting Standards.