Accounting Standards for Non-Profit Organizations (ASNPO)

Revised standard – Agriculture

The AcSB issued amendments to Section 3041, Agriculture in November 2025 that removed certain disclosure requirements for agricultural inventories and clarify the amortization requirement in paragraph 3041.66 for productive biological assets managed on a collective basis. The amendments also clarify the accounting when there is a change to the useful life of productive biological assets.

Consequential amendments have also been made to Section 1520, Income Statement to remove the requirements to present or disclose certain amounts pertaining to agricultural inventories.

These amendments apply to private enterprises applying the standards in Part II of the CPA Canada Handbook - Accounting and to not-for-profit organizations applying the standards in Part III of the Handbook, as relevant.

Effective for annual reporting periods beginning on or after January 1, 2027, with early application permitted.

New accounting guideline – Accounting for Life Insurance Contracts with Cash Surrender Value

The AcSB issued new Accounting Guideline AcG-21, Accounting for Life Insurance Contracts with Cash Surrender Value in September 2024. The Guideline provides guidance on recognition and measurement of cash surrender value of a life insurance policy, presentation and disclosure of policy premiums and changes in cash surrender value.

Effective for annual periods beginning on or after January 1, 2026, with earlier application permitted.

Section 1501, First-time Adoption by Not-for-Profit Organizations has been amended to permit a first-time adopter to apply the transitional provisions in AcG-21.

Section 4410, Contributions – Revenue Recognition has been amended to provide an exception to the requirement to measure contributions at fair value when a not-for-profit organization receives a contribution of a life insurance policy with cash surrender value.

Section 1582, Combinations by Not-for-Profit Organizations has been amended to provide an exception to the requirement to measure identifiable assets at their acquisition-date fair values for cash surrender value.

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 – Relief from Recognition of Acquired Intangible Assets and Amortization of Goodwill

The AcSB issued an exposure draft in October 2025 proposing amendments to Sections 1582, Business Combinations, and Section 3064, Goodwill and Intangible Assets. These proposals would allow private enterprises and not-for-profit organizations to amortize goodwill and provide optional relief from recognizing intangible assets acquired in a business combination.

The proposed amendments include:

• an accounting policy choice to amortize goodwill over a default period of five years (up to 10 years if justified)
• optional relief from recognizing intangible assets acquired in business combinations. Entities electing the relief must amortize goodwill.

The comment period is closed. The AcSB plans to review a draft of the final amendments to Sections 1582 and 3064 at its November 2026 meeting, with final amendments expected in the first half of 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 Q4 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)

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