Section 4431 - Tangible capital assets held by not-for-profit organizations [Superseded]

Effective date:

January 1, 2012

Published by the AcSB:

December 2010


This Section deals with accounting for tangible capital assets held by not-for-profit organizations.

In accordance with the Section, a tangible capital asset would be recorded at cost (and where the tangible capital asset is contributed, cost would be considered fair value at the date of contribution except where the fair value cannot be reasonably determined when it is recorded at a nominal amount). The cost less residual value of an asset with a limited life, is amortized over the asset's useful with the amortization recognized as an expense in the statement of operations. When a tangible asset no longer has any long-term service potential, the excess of its carrying amount over any residual value is recognized as an expense in the statement of operations. A write-down taken is not subsequently reversed.

The Section provides for a simplification - if the NPO (and any entities that it controls) has average annual revenues recognized in the current and preceding period that is less than $500,000, it need not apply the Section. Instead, it would make certain required disclosures about its tangible capital assets.

History of Section 4431




December 2010

Part III of the CPA Canada Handbook  issued

Effective for fiscal years beginning on or after January 1, 2012. Earlier application permitted.

March 2018

Section 4433, Tangible capital assets held by not-for-profit organizations, issued replacing Section 4431

Section 4433 is ef­fec­tive for annual financial statements relating to fis­cal years be­gin­ning on or af­ter Jan­u­ary 1, 2019. Ear­lier ap­pli­ca­tion per­mit­ted.

Note: The above summary does not include details of consequential amendments made as the result of other projects.


Not-for-Profit Advisory Committee meetings

Amendments under consideration

  • None

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