The new guidance, International Non-Profit Accounting Guidance (INPAG), seeks to improve clarity and consistency of Non-Profit Organisation (NPO) financial reports, resulting in greater credibility and trust in the sector globally.

The exposure draft is the second of three parts, each followed by a 4-6-month consultation period. While ED1 addressed the framing for financial reporting of NPOs, ED2 is devoted to the accounting itself. It covers 12 sections:

1. Section 11 — Financial instruments
2. Section 13 — Inventories
3. Section 21 — Provisions and contingencies
4. Section 23 Part I — Revenue — Grants and donations
5. Section 23 Part II — Revenue — Contracts with customers
6. Section 24 Part I — Expenses — Grants and donations
7. Section 25 — Borrowing costs
8. Section 28 — Employee benefits
9. Section 29 — Income tax
10. Section 30 — Foreign currency translation
11. Section 31 — Hyperinflation
12. Section 32 — Events after the end of the reporting period

The remaining sections will be covered in ED3 expected in the first quarter of 2024. Final guidance will be published in mid-2025.

Please click for access to the ED and supporting material on the IFR4NPO website. Comments on the ED are requested by 15 March 2024.