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Part III - ASNPO

New Canadian Guidance for Combinations of Not-for-Profit Organizations

Mar 01, 2021

On March 1, 2021, Section 4449, Combinations by Not-for-Profit Organizations, was added to Part III of the CPA Canada Handbook. This new Section provides the accounting requirements for the recognition, initial measurement and disclosure of a combination by not-for-profit organizations.

The main features of Section 4449 are as follows: (i) the scope of the Section includes combinations involving two or more not-for-profit organizations that are unrelated parties or related parties; (ii) a set of criteria to determine when a combination is accounted for as a merger or as an acquisition; and (iii) guidance on how to account for a merger or an acquisition.

Section 4449 applies prospectively to annual financial statements relating to fiscal years beginning on or after January 1, 2022. Earlier application is permitted.

Global initiative to develop financial reporting guidance for Not-for-Profit Organizations

Feb 23, 2021

On February 23, 2021, the staff of the Accounting Standards Board (AcSB) announced that it is participating in a global initiative to develop non-authoritative financial reporting guidance for not-for-profit organizations (NFPOs) in jurisdictions that, unlike Canada, currently do not have NFPO accounting standards.

The IFR4NPO Consultation Paper has recently been issued. Canadian stakeholders are encouraged to respond to Part I by July 30, 2021 and Part II by September 24, 2021.

Review the article on the AcSB's website.

Comment Deadline Extended – AcSB Consultation Paper, Contributions – Revenue Recognition and Related Maters

Dec 15, 2020

On December 15, 2020, the Accounting Standards Board (AcSB) extended the deadline to submit a comment letter from December 15, 2020 to December 31, 2020 for the Consultation Paper, Contributions – Revenue Recognition and Related Matters.

Review the press release and Consultation Paper on the AcSB's website.

In Brief – Consultation Paper, Contributions – Revenue Recognition and Related Matters

Jun 08, 2020

On June 8, 2020, the Accounting Standards Board (AcSB) released an overview of the AcSB’s Consultation Paper “Contributions – Revenue Recognition and Related Matters”.

The AcSB is committed to improving accounting standards for NFPOs, recently releasing its Consultation Paper, Contributions – Revenue Recognition and Related Matters. This Paper aims to gather feedback from NFPO stakeholders on the challenges of applying the existing contributions guidance.

Review the In Brief on the AcSB's website.

AcSB issues Consultation Paper on Contributions - Revenue Recognition and Related Matters

May 19, 2020

On May 19, 2020, the Accounting Standards Board (AcSB) issued a Consultation Paper to seek input on accounting for contributions and related topics by NFPOs. The Consultation Paper was issued with an extended comment period to provide stakeholders more time to respond in light of COVID-19. The Board will continue to monitor the environment as it evolves. Stakeholders are encouraged to respond by December 15, 2020.

The existing contributions standards of NFPOs were established in 1996. While the standards have remained largely unchanged since that time, research suggests the landscape for many NFPOs has evolved.

Re­view the press re­lease and the Consultation Paper on the AcSB's web­site.

New global initiative to develop financial reporting guidance for not-for-profit organizations

Apr 20, 2020

On April 20, 2020, the Accounting Standards Board (AcSB) announced that it is participating in a global initiative to develop non-authoritative financial reporting guidance for not-for-profit organizations (NFPOs) in jurisdictions that, unlike Canada, currently do not have NFPO accounting standards.

This staff’s involvement in this initiative is part of the AcSB’s strategy to contribute to global best practices in accounting standard setting.

Review the article on the AcSB's website.

Comment deadline extended AcSB Exposure Draft, Combinations – Initial Measurement and Related Disclosures

Apr 01, 2020

On April 1, 2020, in light of the evolving uncertainties created by the global COVID-19 crisis and its effects in Canada, the Accounting Standards Board (AcSB) announced that it has extended the deadline to submit a comment letter from April 14 to May 14, 2020.

This is an interim decision and will be discussed in more depth at the April 15, 2020 AcSB meeting.

Review the Exposure Draft on the ACSB's website.

AcSB Exposure Draft – Combinations – Initial Measurement and Related Disclosures

Jan 15, 2020

On January 15, 2020, the Accounting Standards Board (AcSB) released an Exposure Draft seeking feedback on its proposals to introduce new guidance on the accounting for a combination of not-for-profit organizations. These proposals apply to not-for-profit organizations applying the standards in Parts III of the CPA Canada Handbook – Accounting. Comments are requested by April 14, 2020.

The proposals in this Exposure Draft are as follows:

  • The scope of Section 4449 would include a combination involving two or more NFPOs that are unrelated parties or related parties.
  • The Section would include a set of criteria to determine when a combination is accounted for as a merger or as an acquisition.
  • The Section would include initial and subsequent measurement, presentation and disclosure guidance on how to account for a merger or acquisition.
  • The Section would apply on a prospective basis for combinations occurring on or after January 1, 2022 with early application permitted.

Review the press release and Exposure Draft on the ACSB's website.

Basis for Conclusions — Accounting Standards Improvements for Not-for-Profit Organizations

Mar 01, 2018

On March 1, 2018, the Accounting Standards Board (AcSB) released this document which sets out how the AcSB reached its conclusions. This document includes discussion of significant matters arising from comments received and issues raised in response to its Exposure Draft.

This document summarizes considerations that were deemed significant by the members of the AcSB in reaching their conclusions in developing:

  • TANGIBLE CAPITAL ASSETS HELD BY NOT-FOR-PROFIT ORGANIZATIONS, Section 4433,
  • INTANGIBLE ASSETS HELD BY NOT-FOR-PROFIT ORGANIZATIONS, Section 4434
  • COLLECTIONS HELD BY NOT-FOR-PROFIT ORGANIZATIONS, Section 4441 in Part III of the Handbook.
  • Section 4433 replaces TANGIBLE CAPITAL ASSETS HELD BY NOT-FOR-PROFIT ORGANIZATIONS, Section 4431,
  • Section 4434 replaces INTANGIBLE ASSETS HELD BY NOT-FORPROFIT ORGANIZATIONS, Section 4432
  • Section 4441 replaces COLLECTIONS HELD BY NOT-FORPROFIT ORGANIZATIONS, Section 4440.

Effective Date

Sections 4433, 4434 and 4441 are effective for annual financial statements beginning on or after January 1, 2019, with earlier application permitted.

Download the Basis for Conclusions on the AcSB's website.

New Online Platform – Understanding International Not-for-Profit Reporting

Oct 04, 2017

On October 4, 2017, the Accounting Standards Board (AcSB) issued a press release on the publically-accessible online platform that hosts national guidance on not-for-profit financial reporting was released last week by the Chartered Institute of Public Finance and Accountancy (CIPFA).

This new platform will help countries learn from one another to develop high-quality not-for-profit standards and help to improve understanding of different financial reporting methods for not-for-profit organizations around the world. It brings together information on national guidance in one place.

The platform was developed for the International Forum of Accounting Standard Setters (IFASS) Not-for-Profit Working Group, of which the AcSB is a member.

Review the press release on the AcSB's website and the new platform on the CIPFA's website.

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