Interaction with National and International standards

Not for Profit accounting and reporting standards may be underpinned or influenced by national or international standards.

This section focuses on the interaction between the accounting standards, reporting framework or guidance which exist for NFPs and these standards.

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Australia

How are NFP standards linked with national and international standards?

Who is responsible for setting national/regional accounting and reporting standards?

Australian Accounting Standards Board.


Where there are specific standards or guidance for NFPs, are these linked to national standards?

Yes, given the general applicability of the AASB Standards..


Has the jurisdiction adopted IFRS for NFPs?

Yes.


Have any modifications been made to IFRS for circumstances specific to NFPs?

Yes.

Where user needs and preparer effort are different in the NFP sector compared with the FP sector, the AASB may make modifications to any part of an IFRS.  The modifications are specified in Aus paragraphs inserted into individual Standards.

There are also some domestic Standards that apply only to public sector entities.  These are all numbered within the AASB 1000 series.


Has the jurisdiction adopted IPSAS for NFPs?

No.

 

Is the adoption of IPSAS for NFPs under consideration?

Not explicitly, however IPSAS differences to corresponding IFRS are considered when addressing the need for Aus paragraphs to be added to a Standard.

The AASB also considers IPSASB Standards when addressing topics specific to the public sector.  For example, IPSAS 32 Service Concession Arrangements: Grantor is the basis for our near-finalised AASB Standard on that subject.

Canada

How are NFP standards linked with national and international standards?

Who is responsible for setting national/regional accounting and reporting standards?

The Canadian Accounting Standards Board sets standards for all private sector NFPOs in Canada.

The Canadian Public Sector Accounting Board sets standards for all public sector (government) NFPOs in Canada.


Where there are specific standards or guidance for NFPs, are these linked to national standards?

N/A.

There are only national standards.


Has the jurisdiction adopted IFRS for NFPs?

Private Sector NFPOs have the option to adopt IFRS. Public Sector (government) NFPOs are not permitted to apply IFRS.

 

Have any modifications been made to IFRS for circumstances specific to NFPs?

No modifications to IFRS have been made in general or specific to NFPOs.


Has the jurisdiction adopted IPSAS for NFPs?

No.

 

Is the adoption of IPSAS for NFPs under consideration?

Yes.

Colombia

How are NFP standards linked with national and international standards?

Who is responsible for setting national/regional accounting and reporting standards?

The CTCP.


Where there are specific standards or guidance for NFPs, are these linked to national standards?

Yes.


Has the jurisdiction adopted IFRS for NFPs?

Yes.


Have any modifications been made to IFRS for circumstances specific to NFPs?

No.


Has the jurisdiction adopted IPSAS for NFPs?

Yes.


Have any modifications been made to IPSAS for circumstances specific to NFPs?

No.

France

How are NFP standards linked with national and international standards?

Who is responsible for setting national/regional accounting and reporting standards?

The ANC is empowered by law to set French accounting standards.


Where there are specific standards or guidance for NFPs, are these linked to national standards?

Yes.


Has the jurisdiction adopted IFRS for NFPs?

No.


Is the adoption of IFRS for NFPs under consideration?

No.


Has the jurisdiction adopted IPSAS for NFPs?

No.

 

Is the adoption of IPSAS for NFPs under consideration?

No.

New Zealand

How are NFP standards linked with national and international standards?

Who is responsible for setting national/regional accounting and reporting standards?

External Reporting Board (XRB) and its sub-board the New Zealand Accounting Standards Board (NZASB).


Where there are specific standards or guidance for NFPs, are these linked to national standards?

The New Zealand Accounting Standards Board, a sub-board of the External Reporting Board, is responsible for developing and issuing accounting standards for entities in New Zealand with statutory requirements to financial statements.


Has the jurisdiction adopted IFRS for NFPs?

No. However, certain IFRSs where adopted for Tier 1 and Tier 2 PBEs where (i) a gap in the accounting standards was identified; and (ii) no equivalent IPSAS existed.

In the limited circumstances in which a NFP does not meet the definition of a PBE, and so is regarded as being a “for-profit entity” for financial reporting purposes, and that has general purpose financial reporting requirements, would be required to apply New Zealand equivalents to International Financial Reporting Standards (NZ IFRS), which is based on IFRS.


Is the adoption of IFRS for NFPs under consideration?

No.


Has the jurisdiction adopted IPSAS for NFPs?

Yes, for larger (Tier 1 and Tier 2) NFP PBEs.

Tier 1 and Tier 2 PBE Standards comprise of IPSASs, with a number of changes to terminology and examples to make them appropriate for the New Zealand environment, together with additional standards where necessary.


Have any modifications been made to IPSAS for circumstances specific to NFPs?

Yes.

Enhancements were made to Tier 1 and Tier 2 PBE Standards to make them more relevant and understandable for Tier 1 and Tier 2  NFPs. A reduced disclosure regime is provided for Tier 2 NFP PBEs.

Additional examples and implementation guidance specific to NFPs has been added to support the application of those standards for NFPs. These examples and guidance are not intended to change the recognition and measurement requirements.


United Kingdom

How are NFP standards linked with national and international standards?

Who is responsible for setting national/regional accounting and reporting standards?

The FRC is empowered by law to set UK accounting standards. The accounting standards set by the FRC are also applicable in the Republic of Ireland.


Where there are specific standards or guidance for NFPs, are these linked to national standards?

Yes.

The Charities SORP is linked to national standards, as it provides guidance on how to apply the Financial Reporting Standard applicable in the UK and Republic of Ireland (currently FRS 102) to charity accounts. This includes the specific paragraphs within FRS 102 which apply to ‘public benefit entities’, which includes charities.


Has the jurisdiction adopted IFRS for NFPs?

No.

 

Is the adoption of IFRS for NFPs under consideration?

No.

FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland was substantially influenced by IFRS for SMEs. However, in some areas it follows an approach closer to full IFRS. There is also specific guidance for public benefit entities within the standard.

Because FRS 102 is based on IASB documents, it reflects underlying IASB conceptual principles. The specific guidance for public benefit entities reflects conceptual development by the FRC prior to the issue of FRS 102. The public benefit entities principles complement the IASB principles.

The Charities SORP reflects the requirements of FRS 102 for charities, including the specific guidance for public benefit entities.


Has the jurisdiction adopted IPSAS for NFPs?

No.

 

Is the adoption of IPSAS for NFPs under consideration?

No.

USA

How are NFP standards linked with National and International standards?

Who is responsible for setting national/regional accounting and reporting standards?

The FASB and GASB set financial accounting and reporting standards for nongovernmental and governmental NFPs, respectively, that follow US GAAP.


Where there are specific standards or guidance for NFPs, are these linked to national standards?

Guidance for nongovernmental NFPs is incorporated into the FASB’s Accounting Standards Codification, with specific, incremental guidance contained in Topic 958 for NFPs generally and additional incremental guidance in Topic 954 for nongovernmental NFP healthcare entities.

Governmental NFPs following US GAAP use financial accounting and reporting standards set forth by the GASB in the Codification of Governmental Accounting and Financial Reporting Standards.


Has the jurisdiction adopted IFRS for NFPs?

No.

Is the adoption of IFRS for NFPs under consideration?

No, there are no current plans to adopt IFRS. However, over the past decade, the FASB has worked extensively with the IASB to converge aspects of US GAAP with IFRS, while improving both sets of standards. The FASB continues to monitor the IASB’s activities and seek convergence opportunities where appropriate.


Has the jurisdiction adopted IPSAS for NFPs?

No.

Is the adoption of IPSAS for NFPs under consideration?

No; however, the GASB seeks alignment with IPSAS where possible.