Course Agenda

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Course Agenda Topics
Module 1
Introduction to not-for-profit organizations

• Explain the relevance of NFPOs in Canada.
• Describe the differences between an NFPO and a charity.
• Identify and describe different methods of creating an NFPO.
• Explain how to formally register as a charity and why an organization would choose to do so.
• Describe the financial reporting obligations of an NFPO and the sources of these obligations.

Module 2
Governance and oversight

• Describe the nature of NFPO governance and the roles and responsibilities of members, the Board of Directors, employees, and volunteers.
• Describe the composition and responsibilities of the Board of Directors, including committee and officer position responsibilities.
• Describe the operating procedures of a Board of Directors, including reporting relationships and liability.
• Describe appropriate ethical considerations in the NFPO context.
• Explain the role of internal controls within an NFPO.
• Explain how an external audit contributes to good internal control.
• Describe the role of budgeting within the context of planning and internal control.
• Explain the role of accounting information in the preparation of grant and funding applications.

Module 3
Financial statement concepts

• Understand the accounting concepts and principles that are unique to NFPOs.
• Describe the information needs of not-for-profit financial statement users and explain how these are different from those of for-profit organizations.
• Describe the key NFPO accounting concepts of contributions and matching, and explain how each is accounted for.
• Describe how NFPOs determine the criteria for performance measurement, the types of measures that may be used, and how these are communicated.
• Become familiar with Part III of the CPA Canada Handbook – Accounting and identify which accounting standards are unique to NFPO reporting.

Module 4
Registered charities

• Understand the unique requirements for registered charities, including the categories of registered charities and the requirement to use assets for charitable purposes.
• Understand the characteristics of donations and how to issue correct receipts.
• Prepare a basic annual Registered Charity Information Return.
• Describe the process of dissolving a registered charity.

Module 5
Fund accounting

• Describe fund accounting and the aspects of using fund accounting that are not obvious from reviewing the financial statements.
• Record revenue transactions using the restricted fund method of revenue recognition.
• Provide required disclosure when financial statements are prepared using fund accounting and the restricted fund method of revenue recognition.
• Record basic transactions using fund accounting.

Module 6
Deferral method

• Record revenue transactions using the deferral method of revenue recognition.
• Prepare the required disclosure and accounting entries when NFPOs receive tangible capital assets as contributions.
• Provide required disclosure when financial statements are prepared using the deferral method of revenue recognition.
• Explain when revenues and expenses must be presented at gross amounts rather than at net amounts.
• Contrast the key differences between the two methods of revenue recognition for restricted contributions.

Module 7
Endowments and other key NFPO concepts

• Prepare the required disclosure and accounting entries when NFPOs receive endowment contributions.
• Distinguish between a registered charity and other NFPOs.
• Understand basic GST/HST implications for charities and other NFPOs.
• Explain the ethical responsibilities of volunteers, employees, and board members, and the various ethical opportunities that arise in the not-for-profit sector of accounting.