Accounting Standards for Non-Profit Organizations (ASNPO)

Consultation Paper – Improvements to Section 4450, Reporting Controlled and Related Entities by Not-for-Profit Organizations

The AcSB issued a consultation paper on August 31, 2026 seeking feedback on proposals to improve:

• the accounting for relationships between not-for-profit organizations (NFPOs)
• relationships between NFPOs and profit-oriented enterprises
• the disclosure requirements for related and controlled entities.

The proposals include:

• A new control model for NFPO relationships: Revising the definition of control to focus on power, exposure to benefits and the ability to use power to affect those benefits.
• Changes to significant influence guidance: Revising the definition of significant influence to align with the definition of control by focusing on the power to participate in policy decisions, and introducing a rebuttable presumption of significant influence.
• Accounting for relationships with profit-oriented enterprises: Applying Part II guidance to controlled and significantly influenced profit-oriented enterprises and introducing the option to apply the cost method in certain circumstances.
• Enhanced disclosure requirements: Expanding general information (qualitative) and summary financial information (quantitative) disclosures to provide users with more transparent and decision-useful information about related and controlled entities.

Comments are requested by February 26, 2027.

Exposure draft – Contributions – Revenue Recognition and Related Matters

The AcSB issued an exposure draft in 2023 proposing to issue new Section 4411, Contributions Received by Not-for-Profit Organizations and accompanying amendments to Section 4400, Financial Statement Presentation by Not-for-Profit Organizations. Proposed Section 4411 provides NFPOs with guidance on accounting for contributions and would replace Section 4410, Contributions – Revenue Recognition and Section 4420, Contributions Receivable.

The proposals would:

• replace the current guidance with a single approach for recognizing revenue from restricted contributions
• provide specific guidance on special types of contributions, including contributed materials and services, capital asset contributions, and endowments
• amend the current guidance on financial statement presentation and disclosures by NFPOs.

On May 14, 2024 the AcSB issued a feedback statement, discussing how AcSB considered feedback received and, through targeted outreach and consultation with its Not-for-Profit Advisory Committee, explored various options to address the feedback heard on the Exposure Draft. After thorough consideration, the AcSB decided to take the Contributions project in a new direction.

In May 2024, the AcSB discussed and approved a revised project plan for a new exposure draft that will continue to allow an accounting policy choice for the recognition of restricted contributions and propose improvements to the two existing methods. This new exposure draft will also incorporate relevant proposals and feedback from the first Exposure Draft. The AcSB plans to issue an exposure draft in mid-November 2026.

Additional non-authoritative guidance

To stay ahead of the curve, find additional non-authoritative guidance to help you navigate the application of the Accounting Standards for Not-for-Profit Organizations.

• AcSB summaries of discussed application issues and related decisions on the Guidance Framework project page (AcSB, 2026)
• Guidance: Attention Management and Auditors: Revised CAS 570, Going Concern Brings Changes to the Auditor’s Expectation for Management’s Going Concern Assessment Timeline (AASB, AcSB & PSAB, 2025)
• Project Summary – Evaluating the Preface (AcSB, 2025)

Back to top

Disclaimer

Certain links on this site take you to other websites, resources or tools maintained by third parties over whom CPA Ontario has no control. CPA Ontario provides these links only as a convenience and is not responsible for the contents of any linked website. CPA Ontario makes no representations or warranties regarding, and does not endorse, any linked website, the contents thereof, the information appearing thereon or any of the products or services described thereon. Links do not imply that CPA Ontario sponsors, endorses or is affiliated or associated with the entity that owns or is responsible for any linked website. If you decide to visit any linked websites, you will do so at your own risk. CPA Ontario bears no responsibility whatsoever for the content, accuracy or security of any websites that are linked (by way of hyperlink or otherwise).