Title: Australian Accounting Standards for Non Profits
1GSN486Accounting issues for philanthropic and
nonprofit organisations
Course Co-ordinator Dawn Butler Contact
info d3.butler_at_qut.edu.au 3864
9298 Lecturers Ted Flack and Pat Hoiberg
2Accounting for NPOs
- Nonprofit organisations (NPOs) have unique
accounting issues and transactions. - But there are inadequate accounting standards to
deal with these transactions. Because of the lack
of accounting standards, NPO financial reporting
contains many inconsistencies and
incompatibilities. - NPO financial reports, therefore, are evaluated
within the framework of existing accounting
standards, which are written for profit (or govt)
organisations and which do not accurately
reflect NPO activities and achievements.
3 Approach in course
- Dont worry! Many accounting courses start with
debits and credits! - This course doesnt do that. It goes in at a
much higher level, and concentrates on financial
reports of NPOs. - By the end of the course, youll have expertise
in reading and interpreting annual financial
reports. Youll be able to assess the financial
position and financial performance of any NPO.
4Whats special about accounting for NPOs?
- Some of the specific problems that are faced by
NPOs include - fund accounting
- accounting for government grants
- accounting for donations, donations in kind and
donated assets - accounting for pledges
- accounting for volunteer time and
- depreciation (of donated assets).
5 Queensland NPO Chart of Accounts
Over the past two years, QUT/CPNS has made a
special contribution to NPO accounting in
Australia. So we can claim a special
expertise. We have developed a Chart of Accounts
for small and medium sized NPOs. This work was
done in collaboration with Queensland Treasury,
five major government departments, and a number
of NPO accounting practitioners.
6 Queensland NPO Chart of Accounts
- The Chart of Accounts has been specially
developed for NPOs who receive government funding
to perform social services. - Each government department has its own
requirements, and its own categories to be
reported on. - Some NPOs have multiple accountabilities. There
is at least one NPO which has to report on 37
grants from different government departments.
They complain that they spend their time
reporting rather than providing services! - .
7 Queensland NPO Chart of Accounts
- Whats in the Chart of Accounts ?
- It simplifies and standardises categories for
financial records, - It includes a data dictionary,
- It provides references to Accounting Standards
where relevant, - It allows for the latest legislation and
regulations. - The Chart will simplify the process of acquitting
government grants, and will also improve the
accountability of NPOs. - It has been welcomed by both government
departments and the nonprofit sector.
8GSN486 outcomes
- By the end of the GSN486 course, youll be able
to judge the value of Queensland NPO Chart of
Accounts. - Youll know more about problems and suggested
solutions for the accounting treatment of
financial activities of NPOs. - This will enhance your contribution to your own
organisation in planning, decision making, and
importantly being accountable.