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International Non-Profit Accounting Guidance (INPAG)
- 25 October 2023
- Accounting
- South African Accounting Academy
Currently, there is no international accounting guidance for non-profit organisations. INPAG is being developed by CIPFA and Humentum through the IFR4NPO (International Financial Reporting for Non-Profit Organisations) project, which was launched in 2019.
The International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) was used as the basis for a single set of authoritative guidance for NPOs.
Exposure Draft 2 addresses four main sector-specific accounting issues: revenue from grants and donations; grant expenses; inventories; and foreign currency translation. It is hoped that addressing these issues will result in greater credibility and trust in the sector globally.
This Exposure Draft is the second of three parts; individuals and organisations are encouraged to submit comments on it before 15 March 2024. Exposure Draft 1 was published in November 2022 and focused on the overarching framework for NPO financial reporting. Exposure Draft 3 [ED3], is due for release in 2024.
Feedback received on the Exposure Drafts will be incorporated into the final version of INPAG.
Click here to download Exposure Draft 2 on INPAG:
https://www.cipfa.org/-/media/INPAG/2023/INPAG-authoritative-guidance-ed2.pdf
Relevance to Auditors, Independent Reviewers & Accountants:
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Non-profit organisations should adhere to all laws and regulations – which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (Non-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
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Currently, there is no international accounting guidance for non-profit organisations, so this International Non-Profit Accounting Guidance (INPAG) contains useful information, and may be used by auditors, independent reviewers and accountants, etc.
Relevance to Your Clients:
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Non-profit organisations should adhere to all laws and regulations relating to non-profit organisations.
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Currently, there is no international accounting guidance for non-profit organisations, so this International Non-Profit Accounting Guidance (INPAG) contains useful information, and may be used by auditors, independent reviewer and accountants, etc.