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2021 Consultation Paper: Summary and Responses
The Consultation Paper, published in January 2021 marked the first opportunity for stakeholders to contribute to the development of international financial reporting for the sector. It presented key questions, proposals, and alternatives for public input, and provided essential context for the project.
At 280 pages, the document was extensive—this short video offers a helpful introduction to its structure and content.
What was the outcome?
Members of the public were asked to provide feedback on a number of specific questions.
- The most important of these were about the use of international frameworks, the model for the development of guidance and the topics to be included.
- Responses came from 116 individuals and organisations from 37 countries across the globe.
- The responses to the consultation paper can be accessed here, for Part 1 and Part 2.
The responses to all the questions were fully analysed and were used to inform the development of the Exposure Drafts.
- We asked if international frameworks were the best place to start for developing the guidance.
- Respondents were of the view that this was a pragmatic approach given resource and time constraints.
- Some respondents preferred an entirely new framework or use of IPSAS.
• We sought feedback on using the IFRS for SMEs Accounting Standard supported by international and national frameworks as a model.
• Some respondents had some concerns with using a for-profit framework and sought further clarity.
- We asked for feedback on the NPO-specific issues identified and their prioritisation.
- Most respondents supported the topics identified.
- Some respondents identified additional topics and there was strong support for the inclusion of foreign currency translation.
View the Consultation Paper
Executive Summary
The Executive summary explains why financial reporting guidance for NPOs is needed. It includes the objectives for developing guidance and the approach proposed. In less than three pages it captures the key elements of the Consultation Paper.
Introduction
The Introduction provides a description of the financial reporting issues faced by NPOs, the role of the project in strengthening financial management and explains the objectives of the Guidance.
Part 1
Part 1 examines which organisations are NPOs and the needs users of NPO financial information. It also considers the accounting basis and the role of international financial reporting standards, and recommends a way forward.
Part 2
Part 2 considers NPO-specific financial reporting issues. It sets out the process for identifying issues and prioritisation criteria. It includes in-depth analysis of 10 issues proposed to be prioritised.
Supplementary Material
This explains the background and history to the IFR4NPO project. It also references relevant guidance in international financial reporting standards, and some jurisdictional NPO-specific financial reporting guidance.
Glossary
The glossary provides a general meaning for terms used in Part 1 and 2 of the Consultation Paper. It is intended to assist engagement with the issues and questions raised in the Consultation Paper. Please note this glossary has now been superceded by the INPAS glossary.
Other Languages
Certain sections of the Consultation Paper have been translated into the languages shown below. We are grateful to those who have supported this work.
- Arabic – Executive Summary
- French – Executive Summary
- Spanish – Complete consultation paper, translated by INCP in Colombia.
