This video is a recording of a participatory consultation event which brought stakeholders together to discuss and provide feedback on key proposals in ED3.
Here are the key takeaways from the event summarised below.
Support for:
➡ Supplementary Statement format (but 33% yes but / not sure)
➡ Reconciliation will strengthen connection and auditability.
➡ Choice of expense classifications. Natural as rebuttable presumption.
➡ Proposals for cost allocation (but one No)
➡ Fundraising includes costs of raising grants donations etc.
➡ Tracking all assets and liabilities by fund had 79% support in the poll. But particular support for cash and fixed assets. (See concerns below about capacity)
➡ Fund accounting proposals will go some way to help explain surpluses and deficits.
➡ Criteria for restricted fund (But 33% not sure or no)
There are also concerns about the following:
🚨 Connection between narrative report and financials - activities and expenses. This may be less obvious with natural classification.
🚨 Capacity for smaller NPOs to do cost allocation.
🚨 Additional clarity about support costs to improve consistency.
🚨 Including commercial / trading / investment activities as fundraising costs
🚨 Difficult for NPOs to track fundraising costs, especially where these involve allocated shared costs and apportioned support costs.
🚨 The cost/benefit of tracking all assets and liabilities on each fund. Capacity of smaller NPOs.
🚨 Charging ineligible costs to restricted funds.
The Exposure Draft text can be freely downloaded from www.ifr4npo.org/ed3.
The consultation period is open until 16 September 2024. Download the response template and submit your feedback www.ifr4npo.org/have-your-say. Your feedback matters. Shape the future of NPO financial reporting.
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24 сен 2024
