In 2009, ONN teamed up with Imagine Canada, and PWC Canada to respond to the request for consultation on Accounting Standards for the Nonprofit Sector issued jointly by the Accounting Standards Board and the Public Sector Accounting Board.
The constellation looked at the needs of the sector as it relates to financial reporting by Not-for-Profit Organizations. Of particular interest to the committee during its analysis was to consider who the audience is for financial statements in the not-for-profit sector and how the financial statements are used.
The Expert Constellation recommended the sector continue to use private enterprise standards supplemented by standards specific to not-for-profit organizations. Public Organizations (government controlled) would continue, where required or needed, to use the Public Sector Accounting Standards
The Joint Boards accepted the recommendations of the sector’s expert committee to allow the sectors to continue existing practice of following private enterprise standards supplemented by the 4400 series for nonprofit organizations (Generally Accepted Accounting Principles GAAP).
The International Accounting standards (IFRS) are a permitted option by AcSB but since they lack special provisions for nonprofit organizations and no work in being undertaken to develop Not-for-Profit adaptations, our committee recommends they not be used.
As the private enterprise standards are being revised and updated we are continuing to track the impact on the sector and our reporting needs.