The Australian Accounting Standards Board (AASB) has released a discussion paper considering how to improve and clarify the legislative requirements and reporting framework for charities and NFPs, building on a research report released earlier this year.
The discussion paper considers three key proposals:
- Removing the ability for entities to self-assess their reporting type (doing away with ‘special purpose reporting’);
- Changing the basis of the current reporting threshold tiers for charities to be based on more objective criteria; and
- Possibly, developing an additional suite of NFP-specific accounting standards.
While schools are already bound by reporting requirements as a condition of government funding some schools may still be only preparing ‘special purpose financial reports’. If the proposals in the discussion paper are adopted this is unlikely to be a viable option in the future.
In order to assess the impact on CSA members it would be helpful if any school preparing ‘special purpose financial reports’ could let us know that this is the case.
Schools can download a copy of the Discussion Paper and Appendices from the link below