Understanding Financial Reports for NFPs - CPA Guide
20 March 2014 at 11:31 am
Accounting peak body, CPA Australia has developed a free online publication to help better understand Not for Profit financial reporting.
CPA Australia Chief Executive Alex Malley says the guide is an important milestone in financial literacy initiatives undertaken by CPA Australia.
“A common feature to all NFPs is that they are not set up to generate a return for their members. Yet beyond this common feature, there are enormous differences in how NFPs are set up and operate and also what their objectives may be.
“This guide is all about providing different users who are not experts in accounting with some useful tools and pointers to unlock and make sense of the information that is contained within NFP financial reports,” Malley said.
Some of the key features in the guide are:
- An outline of the important elements of NFP financial statements
- The use of a fictitious example to illustrate some important aspects of NFP financial statements
- An overview of audits and reviews of NFP financial statements
- A simple glossary of terminology used in NFP financial reports
“Australia’s Not for Profit sector is large and diverse and has the power to touch almost all Australians in some way – either directly or indirectly through family, friends and colleagues.
“The guide is very much about enhancing the understanding of Not for Profits and the financial metrics they prepare and present. It can be used by members, donors, funding providers, as well as management and staff of Not for Profits,” Malley said.
Download CPA Australia’s publication, A guide to understanding the financial reports of Not for Profit entities here.