ICAI releases Technical Guide on Accounting for Not-for-Profit Organizations (NPOs) [Read Order]
Accounting for Not-for-Profit Organizations – Not-for-Profit Organizations – NPO – ICAI Latest Updates – ICAI News – Tax News – TAXSCAN
Accounting for Not-for-Profit Organizations – Not-for-Profit Organizations – NPO – ICAI Latest Updates – ICAI News – Tax News – TAXSCAN
The Institute of Chartered Accountants of India (ICAI) has issued a Technical Guide on Accounting for not-for-profit organisations (NPOs).
NPOs in India have significantly contributed to shaping communities and groups, playing a pivotal role in the nation's progress. The growth of the NPO sector in India prompted the ICAI Research Committee to publish the initial Technical Guide in 2009, aiming to provide guidance on accounting treatments for various transactions conducted by NPOs and harmonise diverse accounting practices.
Subsequent developments, including the introduction of Corporate Social Responsibility Regulations in 2014 and amendments to Accounting Standards in 2016, led to the revision of the Technical Guide in 2022 by the Professional Development Committee of Institute of Chartered Accountants of India.
The recent introduction of the Framework for Social Stock Exchange by the Securities and Exchange Board of India (SEBI) highlighted the need for comprehensive guidance on accounting for NPOs, including the applicability of Accounting Standards.
Therefore, under the purview of the Accounting Standards Board (ASB) of ICAI, the Technical Guide has been reviewed and revised to recommend updated accounting treatments and provisions, along with the revision of financial statement formats for achieving comparability.
This revised Technical Guide is expected to serve as comprehensive guidance for Institute Members, NPOs, and concerned stakeholders, promoting uniform accounting and reporting practices. The ICAI expresses hope that this initiative will significantly contribute to enhancing transparency and efficiency within the NPO sector.
“I hope that this endeavour of the Accounting Standards Board will go a long way in providing guidance to the Members as well as all NPOs and concerned stakeholders in establishing uniform accounting and reporting practices”, CA. Aniket Sunil Talati, President of ICAI stated.
“I am confident that this Revised Edition of the Technical Guide on Accounting for Not-for-Profit Organisations will help in standardisation of accounting and reporting practices in the NPO sector and be immensely helpful to our Members and others concerned. I recommend the NPOs to follow the accounting prescribed in the Technical Guide including the formats for formulation of the financial statements and also wish that other stakeholders and auditors of such entities ensure that the Technical Guide is followed in preparation of financial statements of NPOs”, CA. Pramod Jain, Chairman of Accounting Standards Board added.
To Read the full text of the Order CLICK HERE
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