IFR4NPO

IFR4NPO is an initiative to develop the world’s first International Non-Profit Accounting Guidance. This will improve the clarity and consistency of NPO financial reports, resulting in greater credibility and trust in the not-for-profit sector globally. Based on IFRS for SMEs as a foundation, changes have been made to address the unique needs of the sector. In addition to the entity wide accounts (general-purpose financial statements) it also provides guidance on narrative reports that explain the purpose and activities on the NPO, as well as a standard format for donor or project reports, linked via a note in the main accounts. Evidence for demand for this guidance comes from a 2014 survey, in which 72% of respondents from 179 countries agreed that it would be useful. The International Accounting Standards Board (IASB) and the International Public Sector Accounting Standards Board (IPSASB) have licensed their standards for our use and are actively observing the development process. Led by Humentum, a global non-profit, and CIPFA, the Chartered Institute of Public Finance and Accountancy in UK, the highly collaborative project design includes engagement with technical and practitioner advisors from 23 countries, as well as public consultations. The Guidance will be published in 2025, ready for adoption by regulators, individual NPOs and funders.