scholarly journals The need for specific accounting principles for non-profit organisations’ assets without economic benefits, restricted donations and funds

2013 ◽  
Vol 6 (2) ◽  
pp. 459-478 ◽  
Author(s):  
Cobus Rossouw
Keyword(s):  
South African ◽  
Financial Reporting ◽  
Economic Benefits ◽  
Non Profit ◽  
For Profit ◽  
Financial Reporting Standards ◽  
Not For Profit ◽  
Fund Accounting ◽  
Accounting Practitioners ◽  
Business Entities

Non-profit (or “not-for-profit”) organisations are faced with specific challenges in their financial reporting when they are required to or chose to apply formal financial reporting standards. The IFRSs or the IFRS for SMEs are meant for business entities and are not specifically developed to be applicable to non-profit organisations. Prior research suggested that the main problems of nonprofit accounting centre on the recognition of assets with no future economic benefits, but with service potential, the recognition of restricted income and the so-called fund accounting. This research analyses the requirements of IFRSs, IFRS for SMEs and the Australian accounting standards for non-profit organisation relating to these aspects. The article then presents the views of South African accounting practitioners who are involved in the financial reporting of non-profit organisations on these issues.

scholarly journals The Message Conveyed By IFRS-Compliant Information: A South African Perspective

2013 ◽  
Vol 12 (9) ◽  
pp. 1041
Author(s):  
Pieter Van der Zwan ◽  
Nico Van der Merwe
Keyword(s):  
South African ◽  
Financial Reporting ◽  
Professional Education ◽  
Financial Statements ◽  
Primary Objective ◽  
Financial Information ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Accounting Practitioners ◽  
African Perspective

South African companies must prepare financial statements in accordance with International Financial Reporting Standards (IFRS) or other reporting standards modelled on IFRS. Literature suggests that the complexity of IFRS, which stems from detailed rules-based principles in these standards, may harm the ability of users of financial statements to understand financial information in a meaningful way. The primary objective of this study was to evaluate whether selected users and preparers of financial statements in South Africa interpret selected IFRS-compliant information prepared in accordance with rules-based principles in the manner intended by the standard-setters. The results of the study, which are based on data gathered by administering a questionnaire that contained selected IFRS-compliant note disclosures to accounting practitioners, accountancy students, and non-accountants in business, suggest that the participants of the study did not understand such IFRS-compliant information as intended by the standard-setters. Additional disclosure, the adoption of a simplified accounting framework for Small and Medium-sized Entities (SMEs) and the use of an output-based continuing professional education (CPE) system are identified as areas that warrant further research to overcome the threats posed by rules-based principles in IFRS.

scholarly journals Effective Internal Controls for Not-For Profit Entities

2020 ◽  
pp. 47-58
Author(s):  
Achraf Seyam, CPA ◽  
Barry Copper, CPA
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Continuous Monitoring ◽  
Internal Controls ◽  
Professional Services ◽  
Non Profit ◽  
The Public ◽  
For Profit ◽  
Not For Profit ◽  
Non Profit Organizations

The importance of internal control is clear. Effective internal control makes sure non-profit organizations to carried out their mission and objectives, such as proper use of funds and provide professional services to the public without any risk of fraud and mismanagement or breach of ethics. Through continuous monitoring of non-profit’s performance and activities, internal controls dispose of the behaviors of non-profit organizations with their objectives. Internal controls also engaged in good management and make sure to provide appropriate financial reporting by providing accurate and complete reports to the management in a timely manner and make sure the sources are correctly allocated. Internal control is also the tool to safeguard assets that make sure the organizations physical and intangible assets are protected from fraud, misused, and error. Internal control is not only able to deter and detect fraud and error but also is able to reduce the chance to risks.

scholarly journals A critical analysis of the contents of the IFRS for SMEs - a South African perspective

2011 ◽  
Vol 14 (2) ◽  
pp. 188-209 ◽  
Author(s):  
Daniel Petrus Schutte ◽  
Pieter Buys
Keyword(s):  
South African ◽  
Financial Reporting ◽  
Small And Medium Enterprises ◽  
Financial Statements ◽  
Developed Countries ◽  
Financial Reporting Standards ◽  
Accounting Practitioners ◽  
African Perspective ◽  
Medium Enterprises ◽  
Different Levels

The International Financial Reporting Standards (IFRS) for Small and Medium Enterprises (SMEs) was developed to address the reporting needs of SMEs worldwide. Furthermore, SMEs from different parts of the world are exposed to different conditions and environments. Although the IFRS for SMEs was not intended for a specific user group,the majority of the respondents to the Exposure Draft on IFRS for SMEs were from Europe and other developed countries while only limited respondents from Africa and developing countries were involved.  This study considered the relevance of the contents of the IFRS for SMEs in the South African environment based on user requirements. Since SMEs do not necessarily have functional accounting departments and because they rely on external accountants to compile financial statements, we included accounting practitioners and trainee accountants from the SME sector in our survey. As a result we classified the contents of the IFRS for SMEs, from a South African perspective, into different levels of importance or relevance.

scholarly journals Does the GAAP-shoe fit not-for-profit organisations or is it causing them blisters?

2007 ◽  
Vol 1 (1) ◽  
pp. 21-38 ◽  
Author(s):  
Cobus Rossouw
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
General Purpose ◽  
International Capital ◽  
International Capital Markets ◽  
For Profit ◽  
Financial Reporting Standards ◽  
Accounting Practice ◽  
Not For Profit ◽  
Governmental Institutions

Generally Accepted Accounting Practice (GAAP), which comprises International Financial Reporting Standards (IFRSs), has been designed to apply to the general purpose financial statements of all profit-oriented entities, and especially those competing in the international capital markets. On the other hand, not-for-profit organisations exhibit unique characteristics, different from businesses. The nature of not-for-profit organizations means that GAAP (IFRS) is not applicable to them. Small and medium entities (SMEs) and governmental institutions also exhibit unique characteristics and specific accounting standards were developed to meet their specific needs. In South Africa there are no accounting standards that specifically apply to not-for-profit organisations and that take their specific reporting needs into account. This article examines whether GAAP is applicable to not-for-profit organisations, and whether its application adds value to these organisations. The article focuses on the nature of not-for-profit organisations and its impact on accounting standards, discusses the applicability of GAAP and highlights some problems experienced when applying GAAP.

scholarly journals PENYAJIAN LAPORAN KEUANGAN ENTITAS BERORIENTASI NONLABA BERDASARKAN ISAK 35 PADA MASJID BAITUL HAADI

2020 ◽  
Vol 15 (2) ◽  
pp. 113-132
Author(s):  
Sukma Diviana ◽  
Rangga Putra Ananto ◽  
Wiwik Andriani ◽  
Roni Putra ◽  
Armel Yentifa ◽  
...  
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
Microsoft Excel ◽  
Financial Reports ◽  
Non Profit ◽  
For Profit ◽  
Financial Position ◽  
Not For Profit

Mosque is an entity that aims not for profit (non-profit entity), so that financial accountability becomes an important aspect for mosques. Good accountability can be realized by presenting the mosque's financial reports in accordance with generally accepted accounting standards. The standard governing the financial reporting of non-profit entities is the Interpretation of Financial Accounting Standards No. 35 (ISAK 35). By implementing ISAK 35 in the presentation of mosque financial reports, interested parties will be able to assess the financial performance of the mosque. The object of this research is Mosque Baitul Haadi. Data were collected through a series of interviews and observations. Until now, Mosque Baitul Haadi only presented financial reports as far as cash in and cash out. This study aims to compile the financial statements of Mosque Baitul Haadi based on ISAK 35 using Microsoft Excel application tools. The financial statements that will be produced are the statements of financial position, comprehensive income statements, cash flow statements and notes to financial reports.

scholarly journals Castle Hall Academy: A Case Study In Non-Profit Accounting Mismanagement

2011 ◽  
Vol 22 (2) ◽  
Author(s):  
Frank J. Grippo ◽  
Noah P. Barsky ◽  
Joel Siegel ◽  
William Matthews
Keyword(s):  
Financial Reporting ◽  
Font Size ◽  
Non Profit ◽  
Audit Firm ◽  
For Profit ◽  
Not For Profit ◽  
Actual Experience ◽  
Accounting Courses ◽  
Private High School

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.6in 0pt 0.5in;"><span style="font-family: Times New Roman; font-size: x-small;">This case requires you to resolve financial reporting deficiencies that arise in the audit of a not-for-profit entity, a prestigious private high school.<span style="mso-spacerun: yes;">&nbsp; </span>This case is based on the actual experience that an audit firm had with a not-for-profit client.<span style="mso-spacerun: yes;">&nbsp; </span>The primary reporting issues in the case relate to investments, contributions, severance packages, and leases that arise due to school management&rsquo;s failure to consider recent accounting pronouncements.<span style="mso-spacerun: yes;">&nbsp; </span>By completing this case, you will learn about standards that affect not-for-profit entities and how auditors resolve differences with clients.<span style="mso-spacerun: yes;">&nbsp; </span>The decisions that you make require an understanding of technical knowledge of topics covered in typical intermediate accounting courses.<span style="mso-spacerun: yes;">&nbsp; </span>In addition, the case requires you to integrate accounting theory with the practice of auditing.<span style="mso-spacerun: yes;">&nbsp; </span>The premise for the case is that in order to be a successful auditor, you will need a good understanding of your client&rsquo;s business as well as technical accounting issues. </span></p>

scholarly journals Management's Commitment, Education and Ethics on Organisational Entrepreneurship: The Case of South African Non-Profit Organisations

2016 ◽  
Vol 8 (4(J)) ◽  
pp. 133-143
Author(s):  
Rukudzo Pamacheche ◽  
Richard Chinomona ◽  
Tinashe Chuchu
Keyword(s):  
South Africa ◽  
South African ◽  
Structural Equation ◽  
Research Data ◽  
Management Teams ◽  
Equation Modeling ◽  
Voluntary Organizations ◽  
Non Profit ◽  
For Profit ◽  
Not For Profit

The objectives of the study were to explore the management characteristics that are related to organisational entrepreneurship in not-for-profit organisations (NPOs) in Gauteng, South Africa as well as the relationship between organisational entrepreneurship and the organisational performance. The methodology involved a quantitative approach of collecting and analysing research data. A field study was conducted in Johannesburg, South Africa whereby research data were collected from 257 NPO managers from voluntary organizations. Using the SPSS 22 and the AMOS 22 software program, Structural Equation Modeling (SEM) was performed to analyze the research data. The study noted implications for NPO management teams, including the renovation of business model structures to incorporate continuous learning and constructive risk-taking in order to take advantage of the performance benefits derived from organisational entrepreneurship. The study also recommends further research into potential citizenship bodies for NPO management teams to foster commitment to their occupation in the non-profit sector. The research makes a significant contribution by providing a framework in which management's commitment to NPOs can be measured and analysed.

scholarly journals EVALUASI PENERAPAN STANDAR AKUNTANSI KEUANGAN No. 45 PADA ORGANISASI NIRLABA DI BANDAR LAMPUNG

2019 ◽  
Vol 24 (1) ◽  
pp. 1-14
Author(s):  
Saddam Chaled ◽  
Susi Sarumpaet
Keyword(s):  
Nonprofit Organizations ◽  
Financial Reporting ◽  
Group Discussion ◽  
Position Statement ◽  
Economic Benefits ◽  
Financial Accounting ◽  
Accounting Standard ◽  
Non Profit ◽  
Financial Reporting Standards ◽  
International Funding

This study aims to evaluate the implementation of Statement of Financial Accounting Standard (PSAK) No. 45 for non-profit organizations in Bandar Lampung in year 2012. Non- profit entities obtain resources from sponsors who do not expect repayments or economic benefits proportional to the amount of resources provided. This study uses a sample of 22 non-profit entities in Bandar Lampung. However, for this study purpose, 4 nonprofit organizations have been selected as they met the criteria according of financial reporting standards. Data were evaluated using the focus group discussion method. The results of the study found that the PSAK No. 45 on the reporting of financial position, statement of activities, and cash flow statements have not been implemented by non-profit entities in Bandar Lampung. An exception is of one organization which prepared those as a requirement to submit a proposal for international funding.

scholarly journals ANALISIS PENERAPAN PSAK NO. 45 TENTANG PELAPORAN KEUANGAN ENTITAS NIRLABA PADA JEMAAT GMIST PNIEL BIAU KAB, KEP. SITARO

2017 ◽  
Vol 6 (1) ◽  
pp. 103
Author(s):  
Raisa Stephanie Janis ◽  
Novi S. Budiarso
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
Analysis Method ◽  
Non Profit ◽  
For Profit ◽  
Not For Profit ◽  
The Government ◽  
The Church

Profit entity is an organization that can be owned by the government or private sector owned, its main purpose is not for profit. One nonprofit entity engaged in religious church. As a nonprofit entity, the church should make financial statements accountability and reporting to users of financial statements of the church, the church that is the main source of income in the church. In Indonesia, a special standard financial reporting profit entity organized under Statement of Financial Accounting Standards (SFAS) No. 45. This research was conducted at the Jemaat GMIST Pniel Biau. The purpose of this study was to determine the adoption of PSAK No. 45 of the Financial Reporting Entities Non-Profit on Jemaat GMIST Pniel Biau. Descriptive qualitative analysis method is a method discussion of issues that are outlining, describe, compare and explain the data. Results showed Jemaat GMIST Pniel Biau not yet adopted PSAK No. 45 on the presentation of its financial statements, but the church is preparing financial statements of the realization of revenues and expenditures in accordance with the regulations GMIST no. 6 in 2012.Keywords : PSAK No. 45, non profit, financial statements

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