The AASB symposiums held in Melbourne and Sydney last week were an opportunity for the Board to provide information on how they are going to have a greater focus for not-for-profit (including public sector entities) over the next couple of years.
A number of projects are happening in this arena, including:
- Service performance reporting – guidance on reporting on all aspects of an entity’s business, including financial and non-financial performance measures for private sector not-for-profit entities. An exposure draft on this project is expected late in 2012.
- Control in the NFP Public and Private Sector – this project will look at the factors that exist in the NFP sector in determining the control of one entity over another and the implementation of AASB 10 in this sector.
- Income of NFP entities – this has been one of the most controversial standards in relation to NFP and the recognition criteria in relation to grant income. The AASB confirmed that the IASB revenue standard will be used as the basis for determining the recognition of grant revenue for NFPs – it is likely to be based on performance obligations in place and / or the need to repay a grant if certain conditions are not satisfied.
- GAAP/GFS harmonisation – further work on this project will be performed and a review of AASB 1049 undertaken.
- Conceptual framework – the AASB are continuing to look at the conceptual framework from the Public Sector Perspective.
A number of stakeholders will be encouraged by this increased focus on NFPs and public sector accounting standards and requirements and we will keep you updated on significant developments.
You can contact Carmen Ridley to provide your organisation with financial reporting and auditing consulting services on 0438 029 867 or via firstname.lastname@example.org.