As a result of this project, the AcSB proposes to issue a new Section 4411, Contributions Received by Not-for-Profit Organizations and to make amendments to Section 4400, Financial Statement Presentation by Not-for-Profit Organizations, in Part III of the CPA Canada Handbook – Accounting. Proposed Section 4411 will provide not-for-profit organizations with guidance on accounting for contributions and would replace Section 4410, Contributions – Revenue Recognition and Section 4420, Contributions Receivable.
The Exposure Draft includes proposals that:
- replace the current guidance with a single approach for recognizing revenue from restricted contributions;
- provide specific guidance on special types of contributions, including contributed materials and services, capital asset contributions, and endowments; and
- amend the current guidance on financial statement presentation and disclosures by NFPOs.
Review the Exposure Draft on AcSB's website.