Press release originally published via the IFR4NPO website.
CIPFA and Humentum have today published the second Exposure Draft of International Non-Profit Accounting Guidance (INPAG). It aims to improve the clarity and consistency of non-profit organization (NPO) financial reports, resulting in greater credibility and trust in the sector globally.
Currently there is no international accounting guidance for non-profit organizations. This publication follows on from the first Exposure Draft that was published in November 2022. Exposure Draft 2 addresses four main sector specific accounting issues: revenue from grants and donations, grant expenses, inventories and foreign currency translation.
This Exposure Draft is the second of three parts. Individuals and organizations are encouraged to submit comments on it before March 15, 2024.
Rob Whiteman, CEO CIPFA, said:
“International standards have brought great benefits to the for-profit and public sectors in recent decades. Today’s launch marks a crucial milestone on the journey to NPO-specific guidance, developed by the sector, for the sector.”
Christine Sow, CEO Humentum, said:
“Accounting for grants opens up questions about risks, liabilities, rights and obligations, which are fundamental to shifting power in the sector. The proposals create a fantastic opportunity for the accountants, lawyers, compliance folk, local organizations and thought leaders in this space to come together and consider the implications.”
NOTES TO EDITOR
Read the second exposure draft on the IFR4NPO website.
CIPFA is a global professional body, operating at local, national and international level. As a global leader in public financial management and governance, our aim is to make a difference to the world we live in.
Humentum makes global development more equitable, accountable, and resilient by building community, delivering learning, providing solutions, and influencing policy.
International Non-Profit Accounting Guidance (INPAG) is being developed by CIPFA and Humentum through the IFR4NPO project, which launched in 2019.
INPAG has been developed with input from the project’s technical and practitioner advisory groups with volunteer members from 24 countries, bringing expertise in the fields of standard setting, auditing, reporting and grant making.