This webinar covered the proposals on illustrative financial statements in International Non-Profit Accounting Guidance Exposure Draft 3 (INPAG). This topic is still relevant because:
- It enables readers to visualise the result of the various accounting and disclosure requirements
- A level of consistency is required to achieve comparability, yet NPOs are so different from each other.
The participants learnt about:
- How are financial position and financial performance presented for a non-profit organisation?
- How is the ‘financial result’ (surplus or deficit) shown in the context of fund balances?
- How are restricted grants shown in the primary financial statements and notes?
- How does the Supplementary Statement (eg donor report) in the Annex tie into the notes in the NPO’s main financial statements?
Here are the questions and comments that were shared by webinar participants:
- How will the fair market value be determined for the donation-in-kind? For example, 10 laptops were received from donors in 2023. Are there any guidelines?
- One aspect of NPO’s not specifically covered in the illustrative financials is income tax transactions. In some jurisdictions NPOs may be subject to income tax especially for the non-grant income.
- Do inventory disclosures needs to be costed or we are just disclosing inventory numbers.
- Can you just clarify whether ALL FOUR primary statements are required in all cases? Are there any exemptions for small NPOs?
- Different organizations have different levels of senior management. For remuneration disclosure, is there a specific guidance provided to have the right group captured? (Answer not in the video – Yes, in Section 33).
