Global study to improve accounting in not-for-profit sector

The findings of the first ever global study looking at improving international financial reporting for not-for-profit organisations (NPOs) led by Sheffield Hallam University will be presented in the House of Commons today.

Experts from the University were commissioned by the Consultative Committee of Accountancy Bodies (CCAB) to conduct the comprehensive study, alongside colleagues from the University of Dundee’s School of Business, to establish whether there is a need for developing stronger and more harmonised international standards for NPO financial reporting.

Many charities and NPOs operating across the globe face regulatory and legislative demands that are often made more complex by the lack of an agreed approach to NPO-specific financial reporting.

The research team examined key issues relating to international financial reporting standards in the not-for-profit sector and the report will be officially launched at an event hosted by Catherine McKinnell MP, Shadow Economic Secretary to the Treasury, at the House of Commons today.

This is the first significant research of its kind and was based upon a literature review and online survey, which received more than 600 responses from 179 countries.

Based upon the research, CCAB have called for a further study in this area and for consideration to be given to what an international financial reporting standard for the NPO sector should look like.