ASNPO Accounting Notice
Proposed changes to the accounting for contributions by not-for-profit organizations.
The existing contributions standards were established in 1996. While the standards have remained largely unchanged since that time, research suggests the landscape for many not-for-profit organizations (“NFPOs”) has evolved and that contribution agreements are becoming more complex. The Accounting Standards Board (the “AcSB” or the “Board”) has undertaken extensive research over the past years to gain an understanding of the benefits of, and issues with, the existing contributions guidance. In May of 2020, the Board issued a Consultation Paper seeking input from NFPO stakeholders, including financial statement users, preparers, and practitioners. The Board reviewed the feedback received on this Consultation Paper and in March 2023, issued an Exposure Draft titled Contributions – Revenue Recognition and Related Matters to solicit public comment on a proposed new accounting standard that will replace existing guidance.