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ASNPO Reporting Controlled and Related Entities by Not-for-Profit Organizations (Possible Amendments to Section 4450) [Research]

Next steps:

An Exposure Draft is to be developed during the second half of 2016

Last up­dated:

September 2016

Overview

This project is being undertaken in response to the feedback from private sector stakeholders to the April 2013 AcSB/PSAB Joint Statement of Principles, Improvements to Not-for-Profit Standards (the SOP).

This project will determine whether and how to amend Section 4450, Reporting Controlled and Related Entities by Not-for-Profit Organizations, and will address the proposals that:

  1. require consolidation of controlled not-for-profit organizations (NFPOs), subject to an exclusion from consolidation of a large number of individually immaterial organizations (Principle 10);
  2. require the application of the equity method to account for controlled profit-oriented enterprises although an organization would not be required to conform the accounting principles of the subsidiary with those of the parent (Principle 10);
  3. maintain the existing standards for definition and disclosure of economic interests (Principle 11); and
  4. present expenses by function in the financial statements, disclose expenses by object in the notes and present total fundraising and support expenses in either the financial statements or disclose them in the notes (Principle 14).

 

Other de­vel­op­ments

May 2015

At its meeting on May 25-26, 2015, this project was approved by the AcSB which will address whether and how to amend Section 4450, Reporting Controlled and Related Entities by Not-for-Profit Organizations, regarding how to account for controlled not-for-profit organizations and profit-oriented enterprises (Principles 10 and 11). This phase of the project would also address the proposals related to the presentation and disclosure of expenses (Principle 14).

 

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.