Our first two webinars on accounting and reporting matters in 2021, hosted by Kim Heng, focus on issues facing private sector not-for-profit entities and are presented in a two-part series.
Not-for-profit organisations have experienced increased levels of change and scrutiny from both a financial reporting and operational perspective over recent years. Our agendas for each of these webinars cover a mix of both current reporting and operational topics that we believe are of interest.
The application of the specific income recognition standard for not-for-profit entities, AASB 1058 Income of Not-for-profit Entities, has raised challenges in several areas. During Part 1 held on 16 March, we shared the practical complexities of assessing the enforceability of arrangements and whether sufficiently specific performance obligations exist. We also described practical examples of when to consider recognising a financial liability, including the resulting impact on income recognition, on receiving a grant or donation.
Our team also discussed important considerations for achieving financial reporting transparency more broadly, and areas where not-for-profit regulators are focusing their compliance activities. Our tax colleagues talked about trends in the charities sector, the ‘in Australia’ test and ACNC compliance relating to charity governance and Deductible Gift Recipient status.