Accounting Standards Improvements for NFPOs - AcSB

Mar 22, 2016

At its meeting on March 22-23, 2016, the AcSB considered the input from its Not-for-Profit Advisory Committee (the Committee) and decided that an exposure draft of accounting standards improvements will include proposals that require a NFPO to do the following: (i) apply accounting standards for private enterprises in Part II of the Handbook to report the capitalization, amortization and disposal of tangible assets and continue to apply the existing Part III standards for intangible assets; (ii) recognize write-downs to reflect a partial loss of service potential of tangible and intangible assets still in use. The net carrying value of the tangible and intangible assets would be written down to their replacement cost or fair value; and (iii) continue to apply the existing standards in Part III for works of art, historical treasures and similar items that are not part of a collection. The AcSB also requested that the staff undertake further work and consult with the Committee on proposals to be included in the exposure draft relating to collections held by NFPOs and transitional provisions for partial write-downs of tangible and intangible assets. The Committee will discuss these issues at its June meeting. The AcSB expects to issue the exposure draft for comment in the third quarter of 2016.