The first global accounting standard for not-for-profit organisations, the International Non-Profit Accounting Standard (INPAS), has been published.
INPAS provides a standalone, accrual-based framework that reflects the funding models and requirements of not-for-profit organisations.
It includes guidance on narrative reporting, grant income recognition and presenting information about restricted and unrestricted funds.
It also includes a practice guide for harmonised grant reporting.
The Chartered Institute of Public Finance and Accountancy (CIPFA) and Humentum, a global not-for-profit organisation dedicated to improving management in the not-for-profit sector, have driven the development of INPAS for the past six years.
As part of the standards’ development three exposure drafts were published and consulted on in 2022, 2023 and 2024.
A new long-term home
A new US-based foundation, the International Non-Profit Reporting Foundation (INPRF), has been created to oversee the future development, adoption and maintenance of INPAS and any future standards.
Ian Carruthers, outgoing chair of the International Public Sector Accounting Standards Board, has been appointed as its first chief executive.
He said: “INPAS was only a gleam in the eye back in 2014 when 72% of respondents to an international survey from 179 countries agreed that it would be useful.
“Its development over the last six years through the IFR4NPO project has been a fantastic example of global co-creation for the sector by the sector.
“As the new CEO of INPRF which has been specifically created to provide its long-term home, I am delighted that we are finally able to publish this long-awaited ground-breaking guidance.”
The standard is freely available and can be downloaded here.
