Do the Special Purpose financial reporting changes affect Not-For-Profit entities?

From our Financials standards content expert, Carmen Ridley – on the Special Purpose financial reporting changes related to Not-For-Profit entities.

In a word – ‘No’. The AASB project reducing the ability of certain entities to prepare special purpose financial statements is relevant to for-profit entities only. (For more information, refer to AASB 2020-2 Amendments to Australian Accounting Standards –Removal of Special Purpose Financial Statements for Certain For-Profit Private Sector Entities).

AASB NFP Framework

The NFP reporting framework is a work in progress for the AASB.

Don’t forget that Not For Profit’s preparing special purpose financial statements from 30 June 2020 are required to include:

• specific disclosures regarding compliance with recognition, and
• measurement requirements in the standards and consolidation / equity accounting of investments.

Refer to Special Purpose Disclosures for NFP Financial Statements. AASB 2019-4 requirements summary relating to AASB 1054.

For more information or further clarification, contact Carmen via cridley@afrs.com.au.