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Not-for-profit reporting

Not-for-profit reporting. Kerry Hicks FCA – Head of reporting. Who reports financial accounting information. Current practice Legislation determined Corporations Act tiering structure introduced 1 July 2010

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Not-for-profit reporting

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  1. Not-for-profit reporting Kerry Hicks FCA – Head of reporting

  2. Who reports financial accounting information • Current practice • Legislation determined • Corporations Act tiering structure introduced 1 July 2010 • Entities with DGR status all report under Law, those NFPs (not DGR) completely exempted if revenues < $250K • Huge inconsistency in state reporting from no reporting to full reporting

  3. Who reports financial accounting information • Future considerations • Priority to be given to consistency in State reporting • Some concern expressed by NFPs that the thresholds are too low

  4. What type of information is reported • Current practice – accounting standards • Limited by guarantee report in accordance with CL (includes Australian Accounting standards) • Varying accounting practices exist for Australian standards based on whether the entity is a reporting entity or not • Non-corporate NFPs have various reporting requirements (and some none) • Australian accounting standards are IFRS based, single set of standards

  5. What type of information is reported • Future considerations – accounting standards • Does one size (IFRS based) fit all? • Simpler standards required with NFP user focus • Australian standards are changing and likely to require general purpose financial reporting, more complex for some • Jurisdiction developments show lack of consistency across the world in this space

  6. International Developments in NFP/charity financial reporting • New Zealand • Tiered reporting to be introduced, based on IPSAS and not IFRS (multi-standard approach) • Canada • Separate suite of accounting standards for NFPs, based on Canadian GAAP • UK • UK IFRS for SMEs plus separate PBE standard • US • Specific standards applicable

  7. What type of information is reported • Current practice – other requirements • New directors report requirement from 1 July 2010 has introduced mandatory ‘non-financial reporting’ • Non-corporate NFPs have various reporting requirements (and some none) • Institute has produced a best practice guide called ‘Enhancing not-for-profit annual and financial reporting’

  8. What type of information is reported • Future considerations – other standards • Keep directors report requirements at a minimum • Link between financial and non-financial reporting information is tenuous • IPSAS and AASB both have non-financial reporting projects in progress

  9. How can the information be reported efficiently • Use of SBR needed • Incentives to be provided • SBR have already mapped financial reporting standard requirements • NFP extensions to be agreed between major users (incl funders) • Does SCOA meet the need for NFP extensions? • SBR have experience in negotiating between state and commonwealth govts to achieve minimum extensions

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