With public companies transitioning to International Financial Reporting Standards (IFRS) and private enterprises moving to adopt the new Accounting Standards for Private Enterprises (ASPE), what is the future for not-for-profit entities?

Even though standards are not yet finalized, not-for-profit organizations need to start reassessing what standards will apply to them. To start, what category type does the organization fall into? Depending on which category you fall into, different standards will apply. Distinction between the two categories is not always "black and white."  RLB LLP can assist you in determining which category applies to you, and what this means for the future of your financial reporting. New standards are required to be adopted for years commencing on or after January 1, 2011. The detailed standards were issued in December 2010.

The Canadian Institute of Chartered Accountants has confirmed that different standards will apply for "non-government controlled" not-for-profit organizations (NPOs) and "government" not-for-profit organizations (GNPOs). 

The Accounting Standards Board confirmed that new standards have been approved for NPOs.  NPOs will have the option of adopting either IFRS or the accounting standards for not-for-profit organizations (the 4400 series of standards from the CICA Handbook – Accounting), with reference to ASPE.

The Public Sector Accounting Board confirmed that GNPOs can elect either the PSA Handbook or the PSA Handbook supplemented by the 4400 series of standards from the CICA Handbook – Accounting. In either case, IFRS will be required to be implemented through thePSA Handbook. Important to note is that the 4400 series of standards will be renumbered in the PSA Handbook to the 4200 series of standards.

If you have any questions regarding which standards apply to your organization, the implementation of these new standards, or how the new standards will affect your organization, please do not hesitate to contact us. We can help guide your organization through this transition that is fast approaching.