NDS Accounting Forum The Regulatory Horizon 20 May 2010 Professor David Gilchrist Not-for-profit Initiative, School of Business, Fremantle University of Notre Dame Australia

Agenda 1.Key Reports 2.Regulation in the next 5 years 3.Key Accounting Developments 4.Some Resources for Consideration

University of Notre Dame Australia Key Developments 2006 Associations Incorporation Green Bill 2008 Senate Select Committee on Economics 2009 COAG 2010 Productivity Commission Report 2010 Henry Report

University of Notre Dame Australia Points of Commonality Charities Commission UK Model National Regulator Minister One Unique NFP Corporation Regardless of activity All Legislation at Federal Level

University of Notre Dame Australia The Green Bill Department of Commerce would see amended bill go through this Parliament Tiered system of reporting requirements Audit Requirements The National scene?

University of Notre Dame Australia COAG 2010: Standard Chart of Accounts 2010 – 11: SCOA Enhanced 2010 – 11: Mapping Legislative Differences between Jurisdictions : National Full Adoption of SCOA

University of Notre Dame Australia The Henry Review B3 – Tax Concession for Not-for-profits: 41 – Establish a Charities Commission 42 – Apply Tax Concessions to Commercial Activities 43 – FBT Concessions to be phased out over 10 years 44 – Efficient tax regime for clubs should be developed (say one rate of tax over all income)

University of Notre Dame Australia Key Accounting Developments Disclosures by Private Sector Not-for-profit Entities Project – AASB: –More relevant and reliable information –Greater Consistency –Better Accountability –Reduction in Costs –Basis for consideration of Public Sector standards

University of Notre Dame Australia Key Accounting Developments Disclosures by Private Sector Not-for-profit Entities Project – AASB: –Issues to date: Definition Performance Reporting (i.e. non-financial – management commentary) Target date for draft standard – July / August 2010

University of Notre Dame Australia Differential Reporting Initially: Proposed New Concept – “Publicly Accountable”: Similar to the Reporting Entity Concept “Important Entities” – Private Commercial - T/over $250m or Assets $250m; Private Not-for-profit – T/over $25m or Assets of $12.5m Others – IFRS for SMEs

University of Notre Dame Australia Differential Reporting Now Actually Proposed: –Two Tiers: Tier One: Publicly Accountable Tier Two: RDR –RDR rather than IFRS for SMEs Consistency in valuation Consistency in recognition Movement between tiers –Not-for-profits and Public Sector problems with definition of “Publicly Accountable”

University of Notre Dame Australia Some Resources AASB Work Program - Progress/Board-work-program.aspx Progress/Board-work-program.aspx Accounting Requirements for NFPs – /c3/NFP_requirements_Dec_2008.pdf Articles on NFPs: ncial_reporting/current_issues/notforprofits_nf ps/A

University of Notre Dame Australia Some Resources NFP Reporting: les/documents/NFP_Report09_PDF.pdf