On June 8th, the Trinity Western University's School of Business hosted a roundtable discussion on the future direction of not-for-profit accounting standards in Canada. Facilitating the discussion were Peter Martin and Bob Correll from the Canadian Institute of Chartered Accountants (Toronto). The roundtable which took place in Alumni Hall, focused on the strategic direction of GAAP financial reporting standards over not-for-profit organizations. A group of executives from large and small not-for-profits joined in and voiced their opinions. Power to Change, Focus on the Family, the University of the Fraser Valley, Fraser Cascade School District, Metro Vancouver Regional Parks, BDO Dunwoody Chartered Accounting firm and Trinity Western University were among those represented in the roundtable discussion.
On January 1, 2011 all publicly accountable organizations will no longer be reporting their financials using Canadian Generally Accepted Accounting Principles, but will be required to report according to International Financial Reporting Standards. This gives other types of enterprises - private enterprises, government organizations and not-for-profits an opportunity to rethink their accounting framework.
The group centered their discussion around the four main options for not-for-profits accounting standards: 1) Not-for-profits could follow International Financial Reporting Standards or IFRS, like public companies; 2) Not-for-profits could use the new made-in-Canada standards for private enterprises with some variations specific to not-for-profits; 3) Not-for-profits could use made-in-Canada standards for government organizations with some variations specific to not-for-profits;
4) The Accounting Standards Board (AcSB) could develop a new set of accounting standards just for not-for-profits.
Trinity Western University's MBA graduate, Paul Goodyear, was recently interviewed by the AcSB on this issue in his capacity as the Chair of the AcSB's Not-for-Profit Advisory Committee. Says Goodyear, "Given the broad diversity of not-for-profit organizations, it is very difficult for the AcSB to fully appreciate the circumstances of every possible type of organization and their financial reporting needs. Hearing from stakeholders concerning their views is critically important in ensuring that accounting standards for not-for-profit organizations, both in the private and public sectors, continue to meet the financial reporting needs of these organizations and their stakeholders into the future."
TWU Assistant Professor of Accounting Amanda Flint says, "The reason we are holding the roundtable discussion today is that Mr. Goodyear has impressed upon us the importance of giving our voice to this issue."
More information on TWU's School of Business can be found at www.twu.ca/business
Trinity Western University, in Langley, B.C., is an independent Christian liberal arts and sciences university enrolling approximately 4000 students. TWU offers 42 undergraduate majors, ranging from biotechnology, education, nursing, theatre and music, to psychology, communications and biblical studies. TWU's 16 graduate degree programs include counseling psychology, business, theology, linguistics, and leadership, and interdisciplinary degrees in English, philosophy and history. TWU holds Canada Research Chairs in Dead Sea Scroll Studies, Developmental Genetics and Disease, and Interpretation, Religion & Culture.
Last Updated: 2009-06-11