INPAG is due to be published in the second half of 2025. It will be a stand-alone Guidance so that preparers and auditors can find what they need in one place. Using the IFRS for SMEs as a starting point, changes have been made to address the prioritised non-profit issues.
INPAG Practice Guide 1: Supplementary Statements will provide a standard format for reporting on a set of specified activities such as a grant or a project.
The work quality, extensive consultation, and rigorous due process mean that relevant bodies will be able to adopt INPAG as mandatory. And there are win / win benefits for funders and NPOs in harmonised grant reporting.
The NPOs we have in mind during the development process are those that need to track assets and liabilities and report on a range of transactions and activities to meet the needs of the users of their financial reports. Check out this video for more.
INPAG provides guidance about the preparation of whole-of-entity financial statements, to meet the needs of a broad range of readers.
INPAG Practice Guide 1 provides a harmonised format for project or grant reports, linked to the main financial statements.
The primary drivers for the adoption of INPAG will be countries and sector regulators, while funders will promote the use of Practice Guide 1.
Since 2020 we have been developing INPAG. Firstly, a Consultation Paper (CP) sought feedback on the key issues and proposals. The ‘Exposure Draft’ (that is proposed Guidance text, released for public comment) was issued in 3 parts (ED1, 2 & 3).
We are now also looking forward to adoption.
The overarching goals are to improve the usefulness, reliability and consistency of financial reports, while also reducing the burden on reporting NPOs due to multiple formats.
In the video, CIPFAs’ INPAG Technical Director Karen Sanderson explains the objectives that have been front of mind while developing the standard.
The development process is guided by three groups of expert volunteer advisors: the Technical Advisory Group (TAG), the Practitioner Advisory Group (PAG) and the Donor Reference Group. You can see details of their roles, members and meetings below:
Technical Advisory Group – role & members | meetings
Practitioner Advisory Group – role & members | meetings
Donor Reference Group – member organisations
