ICAI issued Exposure Draft of International Non-Profit Accounting Guidance

The Institute of Chartered Accountants of India(ICAI) has issued Exposure Draft of International Non-Profit Accounting Guidance (INPAG) Part 1.

Non-Profit organizations (NPOs) have grown by leaps and bounds with larger magnitude. In view of their growing significance, ensuring accountability and transparency for NPOs becomes important. Sound financial reporting aids in ensuring accountability and transparency for NPOs. Quality of financial reporting depends on recognition, measurement, presentation and disclosure principles.

At international level, it has been recognised that the preparation of financial statements by NPOs is crucial for accountability and decision-making and for trust and confidence in NPOs. However, there are no international standards that guide non-profits in preparing their financial statements. The Chartered Institute of Public Finance and Accountancy (CIPFA) recently issued the first Exposure Draft of International Non-Profit Accounting Guidance (INPAG) for public comment, which is due by March 31, 2023, in order to create specific financial reporting guidance for NPOs. Following consideration of the feedback on this Exposure Draft, two additional Exposure Drafts will be issued, which will comprise INPAG.

With the view to contribute to standard setting at international level, the Exposure Draft of the International Non-Profit Accounting Guidance (INPAG)- Part 1 issued by the IFR4NPO, has been hosted on the website of the Institute of Chartered Accountants of India for public comments with last date as February 17, 2023.

How to Comment

Comments on the abovementioned ED may be submitted through any of the following modes: :

1. Electronically:

Click on http://www.icai.org/comments/asb/ to submit comment online (Preferred method)

2. Email:

Comments can be sent to: commentsasb@icai.in

3. Postal:

Secretary, Accounting Standards Board,
The Institute of Chartered Accountants of India,
ICAI Bhawan, Post Box No. 7100,
Indraprastha Marg, New Delhi 110 002

Further clarifications on this Exposure Draft may be sought by e-mail to asb@icai.in