FYI Article – Change Is Coming to Accounting Standards for Not-for-Profit Organizations
Feb 17, 2017
On February 17, 2017, the Accounting Standards Board (AcSB) released an article that outlines the AcSB’s Exposure Draft “Accounting Standards Improvements for Not-for-Profit Organizations.” The Exposure Draft is open for comment until May 31, 2017.
The proposals relate to tangible capital assets, intangible assets, works of art, historical treasures and similar items not part of a collection, and collections held by NFPOs.
Who Will the Proposals Affect?
All NFPOs in the private sector that own tangible capital assets, intangible assets or collections may be affected. For example:
- all tangible capital assets, intangible assets, and collections need to be assessed and, if impaired, written down to reflect the decline in their value;
- all collections need to be recorded on the statement of financial position at cost or at nominal value; and
- NFPOs must now consider the guidance on componentization in Section 3061, Property, Plant and Equipment.
Review the article on the AcSB's website.
