Those of us that work in the non-profit industry have been keeping an eye on the upcoming switch to International Financial Reporting Standards (IFRS) and what it will mean for non-profits. Currently IFRS has no guidance for non-profits because the concept of a non-profit industry is fairly American in its make-up. Not trying to instigate political debate but by and large the areas that are managed in America by non-profit groups are handled by the government or not at all. With the dissolution of the FASB, who is going to take over guidance for non-profit has been the question on everyone’s mind. Now we have an answer. The FASB has created a new Not-for-Profit Advisory Committee (NAC).
NAC has been established to provide a forum for discussion on current and long-term issues affecting non-profits and will help to communicate guidance to the non-profit community. The committee set to begin in early 2010, will be comprised of 12 to 15 individuals from the non-profit sector including those with experience in academia and law as well as practitioners with a goal of representing a wide cross section of interests. The AIPCA will not have a defined capacity or sponsorship of this new committee yet but it is anticipated that there will be some level of “official participating observer” from the AICPA on the committee.
“The establishment of the NAC solidifies the FASB’s commitment to ensuring that the views of the not-for-profit sector are heard in the development of standards”, said Robert Herz, chairman of the FASB. “We anticipate that enhanced participation from not-for-profits will greatly assist the Board in understanding and appropriately considering the issues and needs of the sector, especially insofar as they differ from those of public and private business entities”.