This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice ( for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

NFPO Combinations – NFP Advisory Committee

Date recorded:

At its meeting on July 21, 2020, the Not-for-Profit Advisory Committee discussed stakeholder feedback on the Exposure Draft and advised the AcSB to:

  1. add a reference to Section 1582, Business Combinations, to account for a for-profit enterprise contributed to a NFPO and to clarify if goodwill is recorded;
  2. provide an exception from the acquisition method when NFPOs under common control combine; and
  3. require measurement of deferred contributions and deferred capital contributions at fair value for an acquired NFPO.

The Committee also recommended the AcSB revise the criteria to distinguish a merger from an acquisition and the related illustrative examples by amending: criterion (b) to include that all parties have meaningful participation in negotiations; criterion (e) to reflect that if all parties have a significant decline or planned significant decline in client communities served, the combination can still be accounted for as a merger; Illustrative Example 2 to demonstrate that internal communications are relevant in assessing if either party to a combination is characterized as the acquirer or acquiree; and Illustrative Example 3 to demonstrate how consideration can flow to a third party. The AcSB will consider the Committee’s comments at the Board meeting on September 9, 2020.

Review the summary of discussions on the AcSB's Web site.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.