Understanding NFP standards

NFP preparers of financial statements may use the 46-page AASB-staff Modifications to Australian Accounting Standards for Not-for-Profit Entities to understand the extent and rationale of standards modifications.

The updates were made to reflect changes since May 2017.

The AASB uses IFRS standards as a base in developing standards for NFPs such as charities and public-sector entities. Where necessary, they are modified to address user needs and specific issues that would cause undue cost or effort to apply.

The publication helps NFP preparers and auditors to understand modifications to IFRS standards and Australian standards that apply to NFPs as well as the AASB's rationale for the modifications.

It should also assist the transition from IFRS standards for those first encountering the Australian Financial Reporting Framework for NFPs.