ICAI Invites Public Comments on CIPFA’s International Non-profit Accounting Guidance Exposure Draft

The preparation of financial statements is essential for accountability, decision-making, and fostering trust and confidence in non-profit organizations (NPOs). Unlike the private and public sectors, NPOs lack common international accounting standards.

In this context, the Chartered Institute of Public Finance and Accountancy (CIPFA) issued the International Non-Profit Accounting Guidance (INPAG) as follows.

1. International Non-Profit Accounting Guidance Part 1: Establishes the framework for NPO financial reporting, covering concepts, principles, and guidelines for financial statements and narrative reporting.
2. International Non-Profit Accounting Guidance Part 2: Focuses on key NPO accounting transactions like revenue from grants, grant expenses, and updates to inventories and foreign currency translation, aligning with IFRS for SMEs but tailored for NPOs.

Now CIPFA issued an exposure draft of the International Non-Profit Accounting Guidance Part 3 International Non-Profit Accounting Guidance (INPAG) focuses on the presentation of financial information and includes new sections on fund accounting, classification of expenses, fundraising costs, and supplementary information about specific funds or activities, such as particular grants or projects.

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