New guidance seeks to improve clarity and consistency of Non-profit Organisation (NPO) financial reports, resulting in greater credibility and trust in the sector globally.
21 November 2022
The IFR4NPO project announces the release of the first Exposure Draft of International Non-Profit Accounting Guidance (INPAG) at the World Congress of Accountants in Mumbai, India. The Exposure Draft (ED) is an initial version of the guidance for public comment.
Since 2019, Humentum and CIPFA have been partnering to develop the guidance for how NPOs prepare their annual audited accounts. The ED was developed with input from the project’s Technical and Practitioner Advisory Groups with volunteer members from 25 countries, bringing their expertise in the fields of standard setting, auditing, reporting, funding and academia.
“Only a few countries have bespoke standards for non-profits. International guidance will drive equity, efficiency, accountability, and ultimately trust in this vital sector. This is a key moment, when the diverse stakeholders of non-profits around the world get to share their opinions and shape the future of financial reporting in the sector.” Tim Boyes-Watson, Global Director, Influence & Initiatives, Humentum.
“International standards have brought great benefits to the for-profit and public sectors in recent decades; today’s launch marks a crucial milestone on the journey to NPO-specific guidance, developed by the sector, for the sector.” Karen Sanderson, CIPFA Project Director, IFR4NPO.
This Exposure Draft is the first of three parts, each followed by a 4-month consultation period. ED1 addresses four main topics that are important for the framing and context of INPAG:
INPAG will have 36 sections. In ED1, we are sharing the preface, sections 1 to 10, and section 35. The remaining sections will be covered in ED2 and ED3 in 2023.
The Exposure Draft is accessible below, together with instructions for how to give feedback. Stakeholders are invited to share views on any aspect of ED1, but we have set out specific questions for your feedback, called ‘Specific Matters for Comment’ (SMCs). Any individual, organisation, or country office may submit comments before 31 March 2023.
For further information, please contact info@ifr4npo.org
