Non-profits to use global accounting standards

Non-profits to use global accounting standards

Charities and professional associations in Australia will be forced to adopt international accounting standards. The introduction of international accounting standards is aimed at improving the consistency and transparency of company accounts but the changes will also apply to some not-for-profit bodies in Australia.

An agenda paper for the August 2002 meeting of the Australian Accounting Standards Board names 24 not-for-profit organisations such as CPA Australia and Salvation Army that will have to change their financial statements to comply with standards issued by the International Accounting Standards Board in London.

CPA Australia technical director Jim Dixon said charities and professional associations were caught by several requirements arising from accounting pronouncements and corporate law. Mr Dixon said many not-for-profit entities were companies limited by guarantee - otherwise known as public companies - and would have to produce financial statements that complied with accounting standards. He said an entity had to have financial statements that complied with accounting standards if external stakeholders had an interest in the organisation.

(Source : http://www.theage.com.au)