Accounting Standards for Not-for-Profit Organizations update 2021
It was a busy year for the Accounting Standards Board (AcSB or the Board) and for Part III of the CPA Canada Handbook—Accounting: Accounting Standards for Not-for-Profit Organizations (ASNPO). Like many organizations, the Board has been hard at work dealing with the ever-evolving situation of the COVID-19 pandemic. The Board has continued to adapt and make quick decisions to address stakeholder needs while also pursuing various projects, including the recognition of contributions.
In addition, a new standard was issued covering the accounting for the combinations of NPOs. Although this standard is not applicable until 2022, it is highly recommended that NPO leaders consider early adoption if entering into a combination. Given the pressures of COVID-19, there has been an increase in combinations, which is why the Board prioritized issuing this new standard.
Private sector NPOs applying ASNPO also apply the relevant standards in Part II of the CPA Canada Handbook—Accounting: Accounting Standards for Private Enterprises (ASPE) to the extent that the standards in Part II address topics applicable for NPOs that are not addressed in Part III. As a result, some changes made to ASPE also affect NPOs.
Discusses the recent change in accounting for NPO combinations.
Lists all ASPE changes relevant to NPOs and explains the significant ASPE ones in detail.
Highlights the accounting impact of COVID-19.
Outlines other amendments and standards effective over the next few years.