Special purpose reporting changes for NFPs
From the year ending 30 June 2020, NFPs preparing special purpose financial statements will be required to provide disclosures about compliance with recognition and measurement requirements of Australian Accounting Standards.
Among the changes, is the need for disclosure around each material accounting policy, as to whether it does not comply with Australian Accounting Standards recognition and measurement requirements, or whether the compliance has not been assessed.
Both medium and large charities registered with the ACNC and companies limited by guarantee lodging financial reports with ASIC will be required to make the additional disclosures, which are aimed at providing more clarity around NFP reporting practices.
For further information, refer to the Australian Accounting Standards Board Action Alert here< Back to blog