NDS Accounting Forum The Regulatory Horizon 20 May
- Slides: 13
NDS Accounting Forum The Regulatory Horizon 20 May 2010 Professor David Gilchrist Not-for-profit Initiative, School of Business, Fremantle University of Notre Dame Australia
Agenda 1. Key Reports 2. Regulation in the next 5 years 3. Key Accounting Developments 4. Some Resources for Consideration University of Notre Dame Australia
Key Developments • 2006 Associations Incorporation Green Bill • 2008 Senate Select Committee on Economics • 2009 COAG • 2010 Productivity Commission Report • 2010 Henry Report University of Notre Dame Australia
Points of Commonality • • • Charities Commission UK Model National Regulator Minister One Unique NFP Corporation Regardless of activity • All Legislation at Federal Level University of Notre Dame Australia
The Green Bill • Department of Commerce would see amended bill go through this Parliament • Tiered system of reporting requirements • Audit Requirements • The National scene? University of Notre Dame Australia
COAG • 2010: Standard Chart of Accounts • 2010 – 11: SCOA Enhanced • 2010 – 11: Mapping Legislative Differences between Jurisdictions • 2012 - 13 : National Full Adoption of SCOA University of Notre Dame Australia
The Henry Review B 3 – Tax Concession for Not-for-profits: 41 – Establish a Charities Commission 42 – Apply Tax Concessions to Commercial Activities 43 – FBT Concessions to be phased out over 10 years 44 – Efficient tax regime for clubs should be developed (say one rate of tax over all income) University of Notre Dame Australia
Key Accounting Developments • Disclosures by Private Sector Not-for-profit Entities Project – AASB: – – – More relevant and reliable information Greater Consistency Better Accountability Reduction in Costs Basis for consideration of Public Sector standards University of Notre Dame Australia
Key Accounting Developments • Disclosures by Private Sector Not-for-profit Entities Project – AASB: – Issues to date: • Definition • Performance Reporting (i. e. non-financial – management commentary) • Target date for draft standard – July / August 2010 University of Notre Dame Australia
Differential Reporting Initially: • Proposed New Concept – “Publicly Accountable”: Similar to the Reporting Entity Concept • “Important Entities” – Private Commercial T/over $250 m or Assets $250 m; Private Not -for-profit – T/over $25 m or Assets of $12. 5 m • Others – IFRS for SMEs University of Notre Dame Australia
Differential Reporting • Now Actually Proposed: – Two Tiers: • Tier One: Publicly Accountable • Tier Two: RDR – RDR rather than IFRS for SMEs • Consistency in valuation • Consistency in recognition • Movement between tiers – Not-for-profits and Public Sector problems with definition of “Publicly Accountable” University of Notre Dame Australia
Some Resources • AASB Work Program http: //www. aasb. gov. au/Work-In. Progress/Board-work-program. aspx • Accounting Requirements for NFPs – http: //www. aasb. gov. au/admin/file/content 102 /c 3/NFP_requirements_Dec_2008. pdf • Articles on NFPs: http: //www. charteredaccountants. com. au/fina ncial_reporting/current_issues/notforprofits_nf ps/A 120616962 University of Notre Dame Australia
Some Resources • NFP Reporting: http: //www. charteredaccountants. com. au/fi les/documents/NFP_Report 09_PDF. pdf University of Notre Dame Australia
