The development of the first International Non-Profit Accounting Guidance (INPAG) for non-profit entities has progressed into a third and final consultation. Currently, no international accounting guidance exists for non-profit organisations.
What issues does the Non-profit Accounting Guidance aim to address?
The Chartered Institute of Public Finance and Accountancy (CIPFA) and Humentum have released a third and final exposure draft. The draft outlines that this new guidance is aiming to address the following issues:
- Fund accounting
- Classification of expenses
- Donor reporting formats for supplementary statements.
Why is there a need for international non-profit accounting guidance?
Currently, there is a lack of specification when it comes to standardised financial reporting for the non-profit sector. INPAG are looking to address this by creating standardised financial reporting for the non-profit sector globally which will help increase credibility and trust.
Where can I find more information?
Exposure Draft 3 is open for comment until 16th September 2024.
More from our charity experts
You can find all of our latest charity sector news and newsletters here.
If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.
Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.
About this Author
Simon Bladen is the partner responsible for looking after the firm’s legal clients and has worked at Hawsons throughout his career. For more information or advice on anything covered in this article, please contact Simon on slb@hawsons.co.uk or 0114 226 7141.[/author_info]
Related content
Formal volunteering falls to an all-time low
A recent analysis by Pro Bono Economics (PBE) has found that rates of formal volunteering have reached an all-time low as 40% of charities report that volunteering numbers have been insufficient to enable them to meet their main objectives in the last 12 months. Small...
Differences between business and charity accounts
Navigating the financial landscape can be complex, especially when it comes to managing accounts for different types of organisation. While both business and charity financial reporting is essential for their respective entities, they serve distinct purposes and...
What is the role of a charity trustee?
The role of a charity trustee One of the biggest challenges for charities and trustees is determining where trustee involvement should begin and end. This is particularly important for small and growing charities. It is also important to clarify the differing roles of...