Model Financial Statements – Private sector NFPO – Part III of the CPA Canada Handbook - Accounting
Auteur : Ordre des comptables professionnels agréés du Québec
The “Model Financial Statements – Private Sector NFPOs – Part III of the CPA Canada Handbook – Accounting” include several sets of financial statements prepared in accordance with the new accounting standards in Part III of the CPA Canada Handbook – Accounting for private sector not-for-profit organizations (ASNFPO) as well as the standards in Part II that apply to NFPOs. The 2018 edition of these model financial statements takes account of the standards in Part III, issued in December 2010, as well as Handbook updates issued until July 31, 2018. These model financial statements only take account of amendments applicable for periods beginning on or after January 1, 2018.
Update – August 2018
The August 2018 update includes the following changes:
These model financial statements only reflect changes that are applicable to periods beginning on or after January 1, 2018 with no early adoption.
Comments on the independent auditor's report and Independent auditor's report updated to take into account the requirements of the Handbook post-auditor reporting section of the CPA Canada Handbook – Assurance.
Models A, B and C
Consolidated balance sheet :
- Addition of a comment on assets and liabilities that must either be separately presented on the face of the balance sheet, or disclosed in the notes to the financial statements or supporting schedules (following changes to Section 1521, Balance Sheet, in July 2017).
- Addition of a comment about grants receivable presented at the face of the balance sheet.
Notes to the financial statements:
- Financial instruments – Financial risks: Addition of a comment on the significance of the risks.
Additional examples of notes and financial statement presentation
- 2 c) Significant accounting policies – Financial instruments – Specific items : new example iv)
- 19 a) Financial instruments – Financial risks: New sentence to add risk exposure changer.
Other illustrative reports
The illustrative reports section was updated to take into account the requirements of the Handbook post-auditor reporting section of the CPA Canada Handbook – Assurance.
These financial statements include three general financial statements (Association A, Foundation B and Aid Agency C) for entities that already apply ASNFPOs as well as a complete section presenting additional examples of notes to financial statements for particular situations.
Furthermore, a model financial statement for first-time adopters of ASNFPO is also included. In addition, each set of financial statements is also accompanied by notes to the financial statements, comments and illustrative audit or review engagement reports.
- Section A – Association A: No fund accounting;
- Section B – Foundation B: With fund accounting according to deferral method;
- Section C – Aid Agency C: According to the restricted fund accounting;
- Section D – Additional examples of notes and financial statement presentation
- Section E – Association A: First-time adoption of ASNFPO;
- Appendix 1 – Other example of a note on the impact of the changeover when an organization uses certain exemptions set out in Section 1501 of the Handbook
- Appendix 2 – Assurance issues on transition to ASNPO
- Appendix 3 – Effect on the financial statements when comparative information is presented in the form of comparative financial statements
- Other illustrative reports
The model financial statements were designed to apply to a wide variety of situations and to set out examples of various options made available by the standards respecting financial statement presentation and content. A table at the beginning of this publication entitled General Comments summarizes these situations and options and will help readers to select the model most suitable to their situation.
Note that a guide addressing specific application for syndicates of co-owners is sold separately and is part of the course material for the training activity Syndicats de copropriétaires : comptabilisation et conseils pratiques (available in French only).
CPAs in public practice and CPAs in industry.