If you serve on the management team or the board of a non-profit organization (“NPO”), you may have heard about some recent changes to accounting standards.
The changes will be effective for fiscal years beginning on or after January 1, 2012 and will apply to all NPO’s that issue audited or reviewed financial statements. The changes will have varying effects on your organization, depending on your governance structure, the nature of the investments your organization holds, the nature of any post-employment benefits your organization extends to its staff and a number of other factors.
As you plan for your upcoming year-end financial statement preparation, keep in mind that scoping and implementing these changes will take some additional time and effort on the part of your finance team. Communicate with your finance team and accountant now to avoid surprises later.