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11 Jun. 2019

Not-for-Profit Entity Definition and Guidance (June 2019)

ED 291 Not-for-Profit Entity Definition and Guidance proposes to replace the existing definition of a not-for-profit (NFP) entity with a substantive definition. The proposed definition has two interdependent parts: (1) the primary objective to provide goods or services for community or social benefit, and (2) the provision of any equity is to support that objective rather than for a financial return to equity holders.

The new definition is proposed to be added to AASB 1057 Application of Australian Accounting Standards, with the old definition removed from the three Standards in which it currently appears.  Implementation guidance to help entities determine whether they are a NFP entity or a for-profit entity would also be added to AASB 1057.

Please submit your comments to the AASB by 9 September 2019 via the AASB websiteLinkedIn or email.