ACTG 6160 Lecture Notes - Lecture 11: Voluntary Sector, Financial Statement, Matching Principle
4 Aug 2018
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If donations are worldwide, then ifrs is more appropriate to use. If the organization is local, then aspe is more appropriate. Canada"s non-profit sector is the second largest in the world; the netherlands is number one: could be due to the difference in government funding, could be due to the diversity of religion in canada. Npos normally do not have transferable ownership rights. Reasons to have npos: social, professional, religious, health, charitable or other not-for-profit purposes. Members, contributors and other resource providers do not in their capacity receive any financial return directly from the organization. Not-for-profit sector also known as the voluntary sector or social profit sector. 4 ways that npos differ from business enterprises: have members instead of owners, lack residual economic interests. The type of fund accounting maintained is dependent upon management"s decision. You can choose not to use fund accounting must use the deferral method.
