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27 Feb. 2020

AASB Research Report 14 Literature Review: Service Performance Reporting for Not-for-Profits

Research Report 14 reviews both the Australian and international literatures for service performance reporting NFPs.

Under the Australian reporting framework, disclosure of service performance information is mostly unregulated for private NFPs. Due to a general lack of emphasis on non-financial information in both national and state legislations, the efficiency information being reported by NFPs is insufficient to meet users’ need.

For charities, stakeholders compare their overall objectives with the service performance information disclosures. Appropriate guidance is required for mandatory disclosures on how to link efficiency information to mission-related objectives or long-term goals.

This report also suggests that the introduction of a tiered service performance reporting framework could assist in alleviating operational and cost pressures on smaller NFPs.

Findings in this report support the AASB’s Management Commentary and Service Performance Reporting Project to determine whether the International Accounting Standards Board’s (IASB) Practice Statement 1: Management Commentary currently being updated by the IASB can be adequately adapted to become a mandatory standard.