On 17 December 2012, the government released an extract of draft consultations and some explanatory material on the new Australian Charities and Not-for-profits Commission (ACNC) financial reporting framework. The Society’s member states and National Council have consulted, and the Society welcomes the opportunity to contribute a submission. The Society has previously provided submissions on related issues.
The Society is supportive of the concept of having a consistent financial reporting framework for the not-for-profit sector, and agrees that there need to be different levels of reporting based on the size of the organisation to ensure requirements do not place unnecessary or inappropriate burdens on not-for-profit organisations. Generally, the Society does not believe that the reporting required will be any greater than what our entities already undertake in their annual reports, or as part of their ASIC requirements.
The Society is also supportive of the notion that most financial statements will still have to comply with the standards issued by the Australian Accounting Standards Board; the ability for organisations to request Reduced Disclosure Requirements; and the broad categories of information that will need to be disclosed in the financial statements and the notes. The Society concurs with the ability for medium-sized organisations to have their accounts reviewed rather than audited.