CIPFA and Humentum have now published the third exposure draft (ED3) of the world’s first-ever International Non-Profit Accounting Guidance (INPAG) for Non-Profit Organisations (NPO).
This is the third and final Exposure Draft which aims to address issues such as fund accounting, classification of expenses (including support costs and fundraising costs) and donor reporting formats (referred to as ‘supplementary statements’). Join our webinar on 20 June to find out more about ED3!
At present there is no international accounting guidance for non-profit organisations. INPAG addresses the crucial need for standardised financial reporting within the non-profit sector, an area that currently lacks specification. It also aims to improve clarity and consistency of NPO financial reports, resulting in greater credibility and trust in the not-for-profit sector globally.
The publication follows the first and second Exposure Drafts released in November 2022 and September 2023 respectively. Exposure Draft 1 focused on the overarching framework for NPO financial reporting. This included a description of NPOs and the reporting entity, the concepts and pervasive principles that underpin financial reporting. While Exposure Draft 2 focused on some of the key accounting transactions that are relevant for NPO financial reporting.
You can find webinars about ED1 and ED2 in our ‘webinar library’ – these were held on 22 November 2022 and 25 October 2023 respectively.
Read and respond to INPAG’s ED3 by 16 September 2024 on the IFR4NPO website.
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