INTHEBLACK February 2023 - Magazine - Page 21
AT A GLANCE
The Australian Accounting
Standards Board (AASB) has
proposed introducing a
simpler financial reporting
framework for smaller notfor-profits.
The AASB is seeking feedback
on its initial proposals,
published in a discussion paper
in September 2022, from sector
participants until the end of
March 2023.
The proposals are a step in
the right direction, but
regulatory changes will be
needed for the framework to
become operational in
Australia.
NFP REPORTING
CHANGES AHEAD
While the Australian Accounting Standards
Board’s proposal to simplify reporting for
smaller not-for-profits is a welcome change,
experts warn that it is just one piece in the
not-for-profit regulatory puzzle.
Story Gary Anders
The Australian Accounting Standards
Board (AASB) has recently focused its
attentions on the not-for-profit (NFP)
sector. This comes after the AASB recently
completed the for-profit phase of its project
to remove the ability for certain entities to
prepare special purpose financial statements.
Adhering to the full suite of Australian
accounting standards (AAS) when fulfilling
financial reporting requirements is often
an onerous and costly exercise for most of
Australia’s smaller NFP entities.
This problem has long been on the AASB’s
radar, with many stakeholders having voiced
the need for simplified reporting.
In September 2022, the AASB published
a discussion paper setting out its proposal
to introduce a far simpler Tier 3 financial
reporting framework for smaller NFPs. The
AASB is seeking feedback by 31 March 2023
from sector participants and others who have
an interest in this topic.
The AASB will not set the parameters for
the NFP entity type or size suitable for this
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