The IFR4NPO Project has reached a major milestone in developing International Non-Profit Accounting Guidance (INPAG). Led by Humentum, a non-profit membership association, and CIPFA, the Chartered Institute of Public Finance and Accountancy in the UK, the highly collaborative project design includes engagement and consultation with all types of stakeholders all over the world.
INPAG is intended to be used primarily by those that need to prepare financial information on an accrual basis and not the very small NPOs that find that cash-based information will be sufficient. INPAG contains useful guidance and principles for these NPOs, but the additional costs of application may exceed benefits to users.
ED1 is the first of three parts, each followed by a 4-month consultation period. It addresses four main topics that are important for the framing and context of INPAG:
- A description of Non-Profit Organisations
- A framework for INPAG
- Financial statements presentation
- Narrative reporting
The INPAG will have 36 sections at the end. ED1 covers sections 1 to 10, and section 35. The remaining sections will be covered in ED2 and ED3 due for release in 2023. You can download the Exposure Draft and submit your comments until 31 March 2023 here.
