Charities are being encouraged to have their say on the second of three consultations on proposed international accounting standards for the sector.
There are currently no such international standards for not-for-profit organisations, so the five-year International Financial Reporting for Non-Profit Organisations project began in 2019 to develop the International Non-Profit Accounting Guidance.
The project is run by the Chartered Institute of Public Finance and Accountancy and Humentum, a global not-for-profit organisation working with humanitarian and development organisations.
This second exposure draft covers four sector-specific accounting issues, namely revenue from grants and donations, grant expenses, inventories and foreign currency translation.
“Accounting for grants opens up questions about risks, liabilities, rights and obligations, which are fundamental to shifting power in the sector,” said Christine Sow, chief executive of Humentum.
“The proposals create a fantastic opportunity for the accountants, lawyers, compliance folk, local organisations and thought leaders in this space to come together and consider the implications.”
This follows on from the consultation on the first exposure draft, which ran from November 2022 to March 2023 and covered general financial reporting issues as well as sector-specific accounting issues.
The third exposure draft is expected to cover presentation issues and the final guidance is planned for publication in mid-2025.
The consultation on the second exposure draft is open until 15 March 2024.
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