NFPs need more AASB help

An Australian Accounting Standards Board report finds that Australia’s adoption of International Financial Reporting Standards (IFRS) has been relatively smooth for most Australian businesses.

Extra support, however, is warranted for not-for-profits, including public-sector entities, charities and incorporated associations, to meet user needs and to reduce costs associated with preparing financial information.

Review of Adoption of International Financial Standards in Australia sets out responses from Australian stakeholders from all sectors that, through interviews and forums conducted by the AASB, shared their views and experiences of the past 10 years – since Australia adopted IFRS.

AASB chair Kris Peach said, ‘The research report finds that while IFRS standards are currently appropriate as a base, extra modifications and guidance for specific standards are needed to support the NFP sector. The AASB is undertaking and considering projects specifically to meet this need.’

The projects include:

  • Exposure draft 277 Reduced Disclosure Requirements for Tier 2 Entities
  • Benchmarking AASB standards against International Public Sector Accounting Standards Board standards to identify further areas that might warrant modification, and
  • Reshaping the Australian Financial Reporting Framework – leading and working with key regulators and policy-makers to simplify and clarify reporting requirements.

Projects being considered are:

  • Fair-value guidance for the NFP public sector
  • Accounting for volunteer services
  • Review of Australian-specific disclosure paragraphs in AASB standards, and
  • Definition of contributions by owners.

‘The [report] has provided important feedback and proves again how vital consultation with all sectors is when developing and maintaining world-class accounting standards,’ Ms Peach said.
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