Non-Profit organizations (NPOs) have grown by leaps and bounds with larger magnitude. In view of their growing significance, ensuring accountability and transparency for NPOs becomes important. Sound financial reporting aids in ensuring accountability and transparency for NPOs. Quality of financial reporting depends on recognition, measurement, presentation and disclosure principles.
At international level, it has been recognized that the preparation of financial statements by NPOs is crucial for accountability and decision-making and for trust and confidence in NPOs. However, there are no international standards guiding NPOs on how to prepare their financial statements. Recently, the first Exposure Draft of International Non-Profit Accounting Guidance (INPAG) has been issued by Chartered Institute of Public Finance and Accountancy (CIPFA) for public comments to be received by March 31, 2023 to create specific financial reporting guidance for NPOs. After considering the feedback on this Exposure Draft, two more Exposure Drafts will be issued which collectively comprise INPAG.
With the view to contribute to standard setting at international level, the Exposure Draft of the International Non-Profit Accounting Guidance (INPAG)- Part 1 issued by the IFR4NPO, has been hosted on the website of the Institute of Chartered Accountants of India (www.icai.org) for public comments with last date as February 17, 2023.
The same can be assessed at the following link: https://resource.cdn.icai.org/72678asb58594.pdf
How to comment
Comments on the abovementioned ED may be submitted through any of the following modes: :