In March 2023, the Accounting Standards Board (AcSB) issued an Exposure Draft proposing the following changes to the Accounting Standards for Not-for-Profit Organizations (ASNPO):
- Introducing a new standard, Section 4411 Contributions received by not-for-profit organizations, which would replace Section 4410 Contributions – revenue recognition and Section 4420 Contributions receivable
- Replacing the current accounting policy choice between the deferral method and restricted fund method of recognizing contributions with a single approach for all not-for-profit organizations (NPOs)
- Changing certain definitions, the guidance for pledges and bequests, and the guidance for contributed materials and services
- Adding disclosure requirements in areas such as endowments and restrictions
- Amending Section 4400 Financial statement presentation for not-for-profit organizations for related considerations
The proposals would be effective for fiscal periods beginning on or after January 1, 2026.
Contact your Grant Thornton advisor if you have any questions about the proposed changes.
The information and comments herein are for the general information of the reader and are not intended as advice or opinion to be relied upon in relation to any circumstances.
The Accounting Standards Board issued an Exposure Draft proposing changes to the Accounting Standards for Not-for-Profit Organizations.