Share

Charities back international accounting standard

Charities back international accounting standard
News

Charities back international accounting standard

Finance | David Ainsworth | 25 Feb 2014

Charity accountants around the world support the development of an international accounting standard for non-profit organisations, according to a report published today.

The report, entitled International Financial Reporting for the Not-for-Profit Sector, was commissioned by the Consultative Committee of Accountancy Bodies as part of a study into international accounting standards. The report is based on 605 consultation responses, mostly from charities, accountants and regulators, representing organisations working in 179 countries.

It found that 72 per cent of respondents favoured developing an international standard, compared to 14 per cent who opposed it.

It says approval for the idea is highest outside developed world countries which already have accounting systems for not-for-profit organisations, with 82 per cent of respondents in African countries supporting the idea.

It says there is currently “limited development” in most national frameworks towards a standard which was appropriate for not-for-profits.

“Particular issues exist for not-profit organisation financial reporting, such as non-exchange transactions, fund accounting issues, narrative reporting and the valuation of non-profit-organisation-specific assets,” the report says.

It also says much more work was needed to decide what sort of standard would be appropriate, and whether it should be mandatory or voluntary. But it says “the development of a formal international standard appears to command a good deal of interest”.

It says that if the standard is mandatory, one option would be to “constitute a new international standard setting body for the not-for-profit sector”, while another would be adapt existing financial standards, such as the international financial reporting standards which the standard for UK charities is based on

Ian Carruthers, chair of the CCAB study and director of policy at the Chartered Institute of Public Finance and Accountancy, said: “This report clearly demonstrates that there is desire for some kind of international standard for the not-for-profit sector, though further work is needed on what form this might take.

“Strengthening transparency and accountability, while potentially reducing costs through consistency in reporting requirements would go a long way in supporting non-profit organisations, donors and those they serve around the world.”

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

IoF and government launch 'memorandum of understanding' on payroll giving

26 Mar 2015

The Institute of Fundraising and the Treasury have agreed a new ‘memorandum of understanding’ to improve...

Introduce separate legislation for commercial 'umbrella' lotteries, say MPs

25 Mar 2015

Separate legislation requiring higher payouts to charity should be introduced to govern larger commercial...

70 per cent of charity respondents experienced demand increase in last year, survey says

25 Mar 2015

Seventy per cent of charities responding to a survey experienced an increase in demand for services in...

Commission investigates Christian charity over misappropriation of funds

27 Mar 2015

The Charity Commission is investigating a Christian charity over concerns relating to the repossession...

Charity investigated over £1.7m losses in US property

26 Mar 2015

The Charity Commission has opened a statutory inquiry into a Jewish charity over concerns that investments...

NCVO and Localgiving partner to provide discounted access to each other’s services

26 Mar 2015

Members of Localgiving, the online fundraising platform, will get free or discounted membership to NCVO,...

Social media 'slacktivism' encourages people to donate, finds JustGiving report

18 Mar 2015

People who share a fundraising page on social media are four times more likely to donate than those who...

Samaritans closes Twitter monitoring app permanently

11 Mar 2015

Samaritans has confirmed that it has permanently closed its app that was designed to monitor people’s...

Daniel Phelan dies, aged 58

13 Feb 2015

Daniel Phelan, owner and editor-in-chief of Civil Society Media, passed away on Wednesday following a...

Join the discussion

 Twitter button

@CSFinance