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The Accounting Standards Board (AcSB) established the Not-For-Profit Organizations
Advisory Committee (AdCom) in 2003 to increase participation of not-for profit organizations’ preparers,
users and auditors in the accounting standard-setting process. The objective of accounting standards is to
meet the needs of users of financial statements by providing the information they require to make informed
decisions. However, not-for-profit organizations are a large and diverse group, and frequently do not
participate as actively in the standard-setting process as do stakeholders of profit-oriented
enterprises.
Purpose
The purpose of the AdCom is to assist the AcSB in understanding how not-for-profit
organizations are affected by various proposed standards as they are considered by the AcSB. In addition, the
AdCom assists the AcSB by providing advice on standard-setting priorities, and on specific agenda projects,
which have specific implications for not-for-profit organizations. This feedback ensures that the
views of not-for-profit organizations are being taken into consideration during the standard-setting process
and assists the AcSB in developing high-quality accounting standards of general application that provide
useful and reliable information related to these organizations at reasonable cost. The AcSB evaluates all
proposals in terms of their expected costs and benefits. The views of the AdCom are also particularly
helpful to the AcSB in evaluating the potential benefits of proposed new and revised disclosures relating
specifically to not-for-profit organizations.
Process
In the early phases of a project, the AdCom provides the AcSB with its views to help
identify issues, alternative approaches, and priorities. As a project moves through the deliberative
process, the AdCom monitors progress being made, and is consulted on key issues as they affect not-for-profit
organizations. After the AcSB has issued an exposure draft, the AdCom is consulted regarding comments
received that have relevance to not-for-profit organizations.
For more detailed information about the AcSB’s NFPO-related projects, please refer to the project summaries
that can be accessed here.
The AcSB is also considering accounting standards that should apply to NFPOs in the future given its decision
to adopt International Financial Reporting Standards for publicly accountable profit-oriented enterprises in
2011. The AdCom is assisting the AcSB with the development of its strategy for not-for-profit organizations.
Membership
Membership of the AdCom comprises nine professionals representing a variety of
not-for-profit organizations’ preparers, users and auditors. In addition, the AdCom has recruited a number of
associates who are consulted on a number of the matters that the AdCom has under consideration to provide a
wider response base from across the country. The AdCom meets three or four times a year.
Current membership of the AdCom can be viewed here.
How to Provide Input
The AdCom is anxious to hear from, and discuss with, not-for-profit organization
preparers, users, and auditors with respect to any concerns with, or observations on, current accounting
standards, items on the AcSB’s technical agenda, and potential agenda items for the AcSB to consider. The
AdCom would also like to identify significant accounting issues when organizations are of the view that the
AcSB should provide additional or revised guidance.
To obtain more information about the AdCom, or to be considered for membership of the
AdCom or its group of associates, contact:
Brian Barrington, CA
Accounting Standards Board
277 Wellington Street West
Toronto ON M5V 3H2
Canada
Phone: +1 (416) 204-3436 or
Fax: +1 (416) 204-3412
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