Accounting Standards for Non-Profit Organizations (ASNPO)

Stay informed of new standards and recent changes to Accounting Standards for Non-Profit Organizations (ASNPO) together with Exposure drafts. Please also see the webinars, training courses and resources from the relevant standard setting boards under the Resources tab for each item.

New accounting guideline – customer’s accounting for cloud computing arrangements

The AcSB issued new accounting guideline (AcG-20) on accounting for cloud computing arrangements that is applicable to private enterprises and not-for-profit organizations. The guideline provides guidance on:

  • accounting for a customer’s expenditures in a cloud computing arrangement; and
  • determining whether a software intangible asset exists in the arrangement.

The guideline also includes an optional simplification approach to permit an enterprise to expense as incurred the expenditures related to the elements in the arrangement within the scope of Section 3064, Goodwill and Intangible Assets.

Effective for annual periods beginning on or after January 1, 2024, 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-20.

Section 4434, Intangible Assets Held by Not-for-Profit Organizations has been amended to clarify that the application of AcG-20 is required for intangible assets.

Exposure draft – Contributions – Revenue Recognition and Related Matters

The AcSB issued an exposure draft 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 and
  • amend the current guidance on financial statement presentation and disclosures by NFPOs.

The comment period is closed. The AcSB is currently deliberating the feedback received.

Exposure draft – Accounting for Life Insurance Contracts with Cash Surrender Value

The AcSB issued an exposure draft proposing to issue new Accounting Guideline AcG-21, Accounting for Life Insurance Contracts with Cash Surrender Value. The proposed Guideline addresses the accounting for life insurance contracts that contain a cash surrender component, from the policy owner’s point of view. The proposed Guideline includes guidance on recognition and measurement of cash surrender value of a life insurance policy, presentation of policy premiums and changes in cash surrender value, and disclosures. The new Guideline would also apply to not-for-profit organizations (NFPOs) using Part III of the Handbook, as relevant.

The comment period is closed. The AcSB is currently deliberating the feedback received.

Exposure draft – Revenue – Upfront non-refundable fees or payments

The AcSB issued an exposure draft proposing to indefinitely defer the effective date of application guidance for upfront non-refundable fees or payments in Section 3400, Revenue, which is currently effective for fiscal years beginning on or after January 1, 2025. The amendments also propose a new disclosure requirement for entities recognizing upfront non-refundable fees or payments in revenue entirely up front.

The comment period is closed. The AcSB is currently deliberating the feedback received.

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