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Managing the transition: New accounting framework for not-for-profit organizations in the private sector


A new accounting framework for not-for-profit organizations in the private sector


The accounting framework followed by not-for-profit organizations (NPOs) in the private sector is in transition. The Accounting Standards Board (AcSB) have approved two accounting framework choices for NPOs in the private sector.

Adopting a new underlying accounting framework involves more than just making accounting standard changes. Most organizations will also need to make information system changes, provide training for staff, communicate with stakeholders, coordinate their activities with donors and review contractual and other agreements. Organizations need to design and implement a transition plan that addresses all of the financial, operational, legal and other considerations associated with the change in their underlying accounting framework.


This publication describes some of the issues for an NPO to address when planning its transition, including:

  • Confirmation that the organization is an NPO in the private sector, as opposed to a government not-for-profit organization (GNFPO)
  • Evaluation of the accounting framework decision to select ASPE + NPO or IFRSs
  • Reporting and operational considerations associated with adopting a new accounting framework
  • The new Part III of the CICA Handbook
  • An overview of the differences between current Canadian GAAP for NPOs and ASPE + NPO
  • A road map for converting to ASPE + NPO or IFRSs
  • Conversion issues for audit committees to consider

Questions? Need more information?


Relevant industries

Not-for-profit organizations

Relevant services

Assurance & advisory

Related links

Managing the transition: A new accounting framework for government not-for-profit organizations