In Canada, private sector not-for-profit accounting is a point of focus for the Accounting Standards Board (AcSB). \nIn 2015, the AcSB put together the Not-for-Profit Advisory Committee, which will:\n\n play a key role in advising the AcSB on Canada’s NFPO accounting standards’ needs\n assist the board with the maintenance and improvement needs of these standards\n\nHOW EXACTLY DOES THE NOT-FOR-PROFIT ADVISORY COMMITTEE WORK? \nThe committee is tasked with a variety of responsibilities to support the AcSB in its work. As an advisor to the board, it: \n\n identifies and recommends topics that should be added to NFPO accounting standards and changes that should be made to existing standards\n develops proposed changes to the standards\n provides advice on managing NFPO accounting standards overall\n\nIts responsibilities reflect the goal of ensuring that the standards meet the needs of users of NFPO financial statements and the organizations that apply them.\nHOW WILL THE COMMITTEE CARRY OUT THESE RESPONSIBILITIES? \nAs an example, the committee will assess various options and then make a proposal to the AcSB that is practical to implement. As part of this process, the committee would advise the AcSB on whether the costs of implementing a change exceed the benefits of that change.\nIn the case of a change to a standard, the committee will provide the AcSB with advice on when to time the changes and how to communicate those changes to stakeholders. The goal in this case would be to help manage the initial application of the updated standards, and to ensure that everyone knows what is happening and considers how to handle the effects of the changes. \nREPRESENTATION FROM ACROSS THE SECTOR\nWith a highly-qualified group of professionals sitting on the inaugural rendition of the committee, the AcSB is in a great position to ensure Canada’s private sector NFPO issues are considered during the standards’ development and improvement processes.\nBesides the accounting practitioners who specialize in this sector, members include preparers from a large charity, a theatre, a university and a member association. Users are represented by charities that distribute funds, a community foundation, an arts council and an NFPO management consultant.\nStay tuned for the committee’s meeting summaries and upcoming meetings.