At its meeting on October 19, 2021, the Not-for-Profit Advisory Committee discussed the stakeholder feedback received on the Consultation Paper. With regards to contributed materials and services, the Committee advised the AcSB that NFPOs should continue to be given a choice whether to recognize these items when the recognition criteria are met. With respect to the criteria, the Committee observed that the criterion related to whether the contributed materials and services would have otherwise been purchased can be subjective. The Committee advised the Board to reconsider this criterion. The Committee supported capital assets contributions with similar characteristics being accounted for the same. However, the Committee had mixed feedback on what recognition method provided the most useful information.

With regard to endowments and bequests, the Committee noted that the current guidance on the definition of endowments is clear. However, there is diversity in practice regarding how this guidance is applied. The Committee thought additional application guidance such as illustrative examples could help to address this diversity. Similarly, the Committee thought that the guidance on how to recognize endowment income is clear. However, the Committee advised the AcSB that providing illustrative examples or other application guidance on endowment income would be challenging given the complexity and diversity in the terms of the underlying endowment agreements. The AcSB will consider the Committee’s comments at its meeting on December 6-7, 2021.

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