The development of the first International Non-Profit Accounting Guidance (INPAG) for non-profit entities has progressed into a third and final consultation. Currently, no international accounting guidance exists for non-profit organisations.
What issues does the Non-profit Accounting Guidance aim to address?
The Chartered Institute of Public Finance and Accountancy (CIPFA) and Humentum have released a third and final exposure draft. The draft outlines that this new guidance is aiming to address the following issues:
- Fund accounting
- Classification of expenses
- Donor reporting formats for supplementary statements.
Why is there a need for international non-profit accounting guidance?
Currently, there is a lack of specification when it comes to standardised financial reporting for the non-profit sector. INPAG are looking to address this by creating standardised financial reporting for the non-profit sector globally which will help increase credibility and trust.
Where can I find more information?
Exposure Draft 3 is open for comment until 16th September 2024.
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About this Author
Simon Bladen is the partner responsible for looking after the firm’s legal clients and has worked at Hawsons throughout his career. For more information or advice on anything covered in this article, please contact Simon on slb@hawsons.co.uk or 0114 226 7141.[/author_info]
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