Friday, January 10, 2025
Our consultation to simplify and streamline the Not-for-Profit Financial Reporting Framework is still open and we are actively engaging with the sector and regulators to encourage feedback on the proposals. To support awareness and engagement we have published a short summary which outlines the key proposals and what the changes could mean for anyone involved with preparing, reviewing, or approving financial statements for Not-for-Profit (NFP) entities in Australia.
Under the current framework, many NFP entities that are similar in size and structure are producing financial reports that apply different reporting requirements. For this reason, Exposure Draft 334 proposes to simplify the Financial Reporting Framework by removing the self-assessment component from the Reporting Entity concept. This would mean all NFP entities that are required to prepare financial statements in accordance with Australian Accounting Standards will no longer be able to prepare special purpose financial statements and will instead need to prepare general purpose financial statements. Exposure Draft 335 proposes to introduce a single accounting standard for Tier 3 NFP entities recognising that Tier 1 and Tier 2 reporting requirements may not present a proportionate cost/benefit for smaller NFP private sector entities that may be affected by the proposals in ED 334.
We would like to encourage stakeholders to share the attached At a Glance document with relevant connections.
The consultation closes 28 February 2025. Download the document here.