No changes to NFP definition and guidance

In June 2019, the Australian Accounting Standards Board (AASB) issued ED 291 Not-for-Profit Entity Definition and Guidance which proposed changes to the definition of ‘not-for-profit entity’ (NFP) based on the New Zealand definition of ‘public benefit entity’, and also proposed additional implementation guidance (refer July 2019 Accounting News).

In its April 2021 Action Alert, the AASB decided not to proceed with its project to amend the NFP definition, and not to provide additional guidance.

The AASB will therefore keep the current NFP definition in Australian Accounting Standards. While the majority of the respondents to ED 291 Not-for-Profit Entity Definition and Guidance supported changing the definition, concerns were raised about the clarity of the implementation guidance, the level of judgement required, and the expected transition effort and cost for some entities.

More information

Refer to the AASB Action Alert for more information.

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