New disclosure requirements for some NFP preparing SPFS
With research showing that disclosure for special-purpose statements has been insufficient extra disclosures will provide clarity on compliance with the recognition and measurement requirements in Australian Accounting Standards.
NFPs will not be required to change existing accounting policies, they simply need to be aware of the details required.
WHO IS AFFECTED:
- Medium and large charities registered with the ACNC preparing SPFSs
- NFP entities that are lodging SPFSs with ASIC under the corporations Act 2001 (for example, companies limited by guarantee)
WHO IS NOT AFFECTED:
- Small charities registered with the ACNC
- Medium and large charities registered with the ACNC that are nit required to comply with ACNC reporting requirements due to ACNC transitional-reporting arrangements
- NFP entities required by federal, state and territory legislations to prepare financial statements in accordance with accounting standards (for example, incorporated associations, co-operatives and charitable fundraising organisations that are preparing SPFS and not specifically required to comply with AASB 1054)
- NFP public-sector entities
- For-profit private and for-profit public sector entities
“Except for consolidation and equity accounting, for each material accounting policy applied and disclosed that does not comply with recognition and measurement requirements in Australian accounting standards, you must indicate where it does not comply, or disclose that an assessment of compliance has not been made, and whether or not the SPFS complies overall with the recognition and measurement requirements or state that such an assessment has not been made.
If the NFP entity has not made this assessment and was not required by legislation to do so, it must instead disclose that no assessment has been made.”