Section 4432 - Intangible assets held by not-for-profit organizations [Superseded]

Effective date:

January 1, 2012

Published by AcSB:

December 2010


This Section deals with accounting for intangible assets acquired or developed by a not-for-profit organization.

A not-for-profit organization applies Section 3064 Goodwill and Intangible Assets, in Part II of the Handbook, to such assets except as otherwise provided in this Section. This Section provides that when an intangible asset no longer has any long-term service potential to the organization, the excess of its net carry amount over any residual value should be recognized as expense in the statement of operations. Any write-down should not be 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 intangible assets.

History of Section 4432




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 4434 issued, replacing Section 4432

Section 4434 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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