Law Council of Australia

Legal Practice Section

Not-for-profit Financial Reporting Framework—ED334 and ED335

Submission Date: 28 February 2025

This submission has been prepared by the Charities and Not-for-profits Committee of the Law Council of Australia’s Legal Practice Section (the Committee). The Committee welcomes the opportunity to make a submission to the Australian Accounting Standards Board in relation to Exposure Draft ED 334 “Limiting the Ability of Not-for-Profit Entities to Prepare Special Purpose Financial Statements” and Exposure Draft ED 335 “General Purpose Financial Statements—Not-for-Profit Private Sector Tier 3 Entities”.

The Law Council understands that the proposed new standards are intended together to promote the Board’s objective of removing the ability of many not-for-profit organisations to prepare special purpose financial statements and, in particular, to introduce a new accounting standard (General Purpose Financial Statements—Not-for-Profit Private Sector Tier 3 Entities) for “smaller NFP private sector entities”.

The Law Council acknowledges that these standards can only be issued by the Australian Accounting Standards Board, and that any requirement for their application needs to be made by legislative and regulatory change, which will require regulators to undertake an assessment of the entire accounting reporting requirements so as to ensure the proposed standards are commensurate with the reporting needs of the impacted charities and not-for-profits.

Last Updated on 17/04/2025

Share

Related Documents
Tags

Most recent items in Legal Practice Section


Trending Items in Legal Practice Section