Section PS 4270 - Disclosure of allocated expenses by not-for-profit organizations

Effective date:

January 1, 2012

Published by the PSAB:

December 2010


This Section establishes disclosure standards for a not-for-profit organization that classifies its expenses by function and allocates its expenses to a number of functions to which the expenses relate. This Section does not require organizations to classify their expenses by function or to undertake any allocations. Reporting expenses by function frequently requires an organization to attribute individual expenses among the functions to which they relate.

When allocations of fundraising and general support expenses have been made to other functions, the accounting policy disclosure should explain the policies adopted for the allocation of expenses among functions, the nature of the expenses being allocated and the basis on which such allocations have been made. In addition, the amounts allocated from each of these two functions, and the amounts and the functions to which they have been allocated, should be disclosed.

The application guidance and illustrative examples at the back of this Section provide additional guidance to an organization that chooses to classify its expenses by function.

History of Section PS 4270




December 2010

New Section

This new Section is part of the new accounting standards for government not-for-profit organizations establishing recognition, measurement and disclosure standards.

Sections 4200 to 4270 are effective only for government not-for-profit organizations that elect to follow the standards for not-for-profit organizations in the CPA Canada Public Sector Accounting Handbook and are effective for fiscal periods beginning on or after January 1, 2012.

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


Amendments under consideration

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.