AcSB issues Exposure Draft, “Contributions-Revenue Recognition and Related Matters”
Mar 30, 2023
On March 30, 2023, the Accounting Standards Board (AcSB) issued an Exposure Draft entitled “Contributions – Revenue Recognition and Related Matters” to improve financial reporting by Not-for-Profit Organizations (NFPOs) by creating guidance that will result in financial statements that are less complex and more comparable for financial statement users. Comments on the Exposure Draft are due by September 30, 2023.
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.
