Section 4433 - Tangible capital assets held by not-for-profit organizations

Ef­fec­tive date:

January 1, 2021

Pub­lished by the AcSB:

March 2018



This new Section (which replaces Tangible Capital Assets Held by Not-For-Profit Organizations, Section 4431), requires the application of Property, Plant and Equipment, Section 3061, and Asset Retirement Obligations, Section 3110, in Part II of the Handbook for tangible capital assets held by not-for-profit organizations, and provides guidance on contributed assets and write-downs of assets.

The main changes from Section 4431 are as follows:

  • Tangible capital assets are written down to fair value or replacement cost to reflect partial impairments when conditions indicate that the assets no longer contribute to an organization's ability to provide goods and services, or that the value of future economic benefits or service potential associated with the tangible capital assets are less than their net carrying amounts.
  • Examples describe conditions that may indicate impairment of tangible capital assets.
  • Disclosure requirements in Impairment of Long-lived Assets, Section 3063 in Part II, are required for impairments of tangible capital assets.

History of Section 4433




March 2018

New Section 4433 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 is permitted.

November 2019


On the issuance of new Section 3041, Agriculture, to Part II of the Handbook, Section 4433 has been amended to clarify that a not-for-profit organization accounts for productive biological assets in accordance with Section 3041. This amendment is ef­fec­tive for annual periods beginning on or after January 1, 2021, with earlier application permitted.

August 2020


As a re­sult of the im­pact of the Covid-19 pan­demic, the AcSB de­cided to de­fer the ef­fec­tive date of the November 2019 amendment to Section 4433 by one year to fis­cal years be­gin­ning on or af­ter Jan­u­ary 1, 2022. Ear­lier ap­pli­ca­tion con­tin­ues to be 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

  • None

Amend­ments un­der con­sid­er­a­tion

  • None

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