Accounting Standards Improvements for NFPOs - AcSB

Date recorded:

At its meeting on July 20, 2016, the AcSB considered the input from its Not-for-Profit Advisory Committee and decided that, in addition to proposals approved in March 2016, the exposure draft will include proposals that require a not-for-profit organization (NFPO) to:

  • recognize collections held by NFPOs on the statement of financial position at either cost or nominal value;
  • recognize write-downs to reflect a partial loss of service potential of a collection (i.e., the cost of the collection would be written down to its replacement cost or fair value);
  • choose whether to apply the proposals relating to collections retrospectively and use transition relief to measure the cost of collections in a practical manner; and
  • apply the proposals for write-downs of tangible and intangible assets prospectively.

The AcSB decided to ask stakeholders about the effects of applying the guidance in Section 3061, Property, Plant and Equipment, on componentization.

The AcSB also directed the staff to request the Committee and other stakeholders to conduct a fatal flaw review of the exposure draft prior to issuing it. In light of this additional review, the AcSB is examining when the exposure draft will be issued.

Review the Executive Summary on the AcSB's Web site.

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