First Question: Who is financing your organization? Government funding, Private donors, other organizations & charities, owner financed or even a mix of these.
There are many questions stakeholders would ask. What is the goal of the entity? Is it meeting its goals? Is the money being expensed appropriately and accounted for? Is there value for the money? Is the organization considering its impact on the community at large?
Sometimes NPO’s operate in multiple currencies and holds foreign as well as domestic bank accounts due to their donors. Foreign exchange rates are now a consideration and how to report it on the books accurately.
Private sector not-for-profit organizations (NPOs) prepare financial statements in accordance with Part III of the CPA Canada Handbook— Accounting: Accounting Standards for Not-for-Profit Organizations (ASNPO). During 2017, the Accounting Standards Board (AcSB) issued the first Exposure Draft related to its NPO improvement project. NPOs applying ASNPO also apply the relevant standards from Part II of the CPA Canada Handbook—Accounting: Accounting Standards for Private Enterprises (ASPE) to the extent that the standards in Part II address topics applicable for NPOs that are not addressed in Part III. As a result, some changes made to ASPE also affect NPOs. This publication will discuss amendments resulting from the 2017 ASPE Annual Improvements Process and their impact on NPOs as well as provide an update on the progression of the AcSB’s NPO improvement project and other projects the AcSB is working on that will impact NPOs.