Charities back international accounting standard
Charity accountants around the world support the development of an international accounting standard for non-profit organisations, according to a report published today.
The report, entitled International Financial Reporting for the Not-for-Profit Sector, was commissioned by the Consultative Committee of Accountancy Bodies as part of a study into international accounting standards. The report is based on 605 consultation responses, mostly from charities, accountants and regulators, representing organisations working in 179 countries.
It found that 72 per cent of respondents favoured developing an international standard, compared to 14 per cent who opposed it.
It says approval for the idea is highest outside developed world countries which already have accounting systems for not-for-profit organisations, with 82 per cent of respondents in African countries supporting the idea.
It says there is currently “limited development” in most national frameworks towards a standard which was appropriate for not-for-profits.