General

Not-For-Profit reform-issues under examination

by Yin Zhong on January 6, 2012 · 0 comments

The work the AASB is undertaking on the recognition of income, reducing the disclosure burden and service performance reporting (further details are available at www.aasb.gov.au) demonstrates that the AASB regards the NFP sector as a significant sector in the Australian economy that warrants particular attention.

1.       Accounting for Income of NFP Entities

The AASB has been examining when an NFP should be required to book income. Some of the proposals were not supported by the submissions. In light of this, the AASB is now working on a different approach, based on the principles being developed by the IASB in its work on a Standard for Revenue from Contracts with Customers, modified where necessary for NFP-specific issues. This approach is being referred to as a ‘performance obligations’ approach, whereby income is booked as being earned when performance obligations are fulfilled.

Under this approach, in some instances the income would be booked later than under AASB 1004. Many practitioners would regard such an outcome as providing a more relevant depiction of the NFP’s income, and therefore its performance and financial position.

2.       Disclosures by NFPs

The AASB has issued AASB 1053 Application of Tiers of Australian Accounting Standards. Most importantly it substantially reduces disclosure requirements for NFPs. In addition to the second tier initiative, the AASB plans to further examine opportunities for reducing the disclosure burden on NFPs. In addition to the second tier initiative, the AASB plans to further examine opportunities for reducing the disclosure burden on NFPs.

3.       Service Performance Reporting

This project is examining issues related to the reporting of inputs, outputs, outcomes and performance measures – not just financial information. This project is examining issues related to the reporting of inputs, outputs, outcomes and performance measures – not just financial information. The AASB is looking at what role it should play in specifying mandatory or non-mandatory non-financial disclosures that would provide input for decision makers.

To date a significant amount of research has been done on existing service performance reporting in various jurisdictions. This research provides a basis for benchmarking the development of principles for service performance reporting.

Not-For-Profit reform-getting up to date

by Yin Zhong on January 5, 2012 · 0 comments

From 1 July 2012 many of the functions currently undertaken by the Australian Taxation Office (ATO) in relation to the administration of charitable endorsement will be undertaken by the ACNC. In preparation for this transition the ATO is encouraging all charities and NFP entities to ensure that their details are up to date, particularly their contact details.

 

When the ACNC starts operation on 1 July 2012, the responsibility for determining charitable status will move from the ATO to the ACNC. Those entities currently endorsed as charities by the ATO will become registered by the ACNC.

 

This will be a seamless transition, but will be greatly assisted if the details of entities are as up-to-date as possible.

 

To help the ATO protect your entity’s privacy and provide office bearers with access to the information they need to perform their duties, please notify the ATO of any changes to your entity’s registration details.

 

If you are an authorised contact person that the ATO has on its records for your entity’s ABN, or would like to check whether you are the contact person, you can phone the ATO on 1300 130 248. If you are not an authorised contact person, you will need to ask for a Change of registration details form (NAT 2943).

 

 

 

 
 
 

 

Welcome to our new blog!

by Bruce Frost on March 14, 2011 · 0 comments

Welcome to the new Frost Crane & Co blog!

Keep an eye on the site for latest developments and new ideas in the tax planning and business world.