International Financial Reporting Standards for NFPs?
Thursday, 27th February 2014 at 8:28 am
A UK-based accountancy body has published the first international study into financial reporting for Not for Profit organisations, including Australia.
The study, by the Consultative Committee of Accountancy Bodies (CCAB), was conducted by academics from four universities (from the UK, Ireland and New Zealand), and assessed the need and demand for stronger financial standards for NFPs internationally.
The research was based upon a literature review and survey which received over 600 responses from 179 countries across the world. Some 12 percent of study responses came from Australia.
The study found that overall there is an appetite among NFPs for an international standard for financial reporting in the Not for Profit sector with 72% of respondents agreeing that it would be useful.
Based on the research, CCAB has called for more study into what is needed in this area and further consideration of what an international standard for financial reporting in the Not for Profit sector could look like.
It said further research should also consider whether an international standard could create consistent expectations from donors, so potentially reducing the costs for NFPs by avoiding duplication.
“This report clearly demonstrates that there is desire for some kind of international standard for the Not for Profit sector, though further work is needed on what form this might take,” chair of the CCAB study, Ian Carruthers said.
“Strengthening transparency and accountability, while potentially reducing costs through consistency in reporting requirements would go a long way in supporting NPOs, donors and those they serve around the world.”
A copy of the full report, International financial reporting for the Not for Profit sector, is here.
The executive summary of the study can be found here.