MNP Comment Letter - Improvements to Not-for-Profit Standards Statement of Principles

MNP Comment Letter - Improvements to Not-for-Profit Standards Statement of Principles


Thank you for the opportunity to comment on the above noted document. We have reviewed the Statement of Principles and provided our responses to the comments requested below.

Questions for Private Sector NFPOs

Do you agree with the proposals in Principles 2 and 3 that a contribution would be revenue, except when the contribution gives rise to an obligation that meets the definition of a liability?

Overall we agree with the proposals of Principles 2 and 3, however, we believe that additional guidance is necessary to facilitate the transition of accounting for existing contribution agreements which may infer a constructive obligation. As a result of applying the previous deferral method of accounting for contributions, past contribution agreements may not have been worded as strongly regarding stipulations. In comparison the same NFPO may re-word future contribution agreements to clearly establish the obligations which only existed in the past in a constructive fashion. We believe that additional guidance regarding transition and constructive obligations is required to ensure that we do not encounter NFPOs with differing accounting treatment for past and future contributions when the economic reality of the situation is unchanged.

MNP Comment Letter - Improvements to Not-for-Profit Standards Statement of Principles

Contact a member of MNP's Financial Reporting Team

Michelle Balmer

Michelle Balmer CPA, CA

Vice President, Assurance

Michelle Balmer, CPA, CA, is a Senior Assurance Services Partner with MNP. With 14 years of experience in public practice, Michelle helps a broad range of public and privately held companies in a variety of industries. She also works on special projects, including costing studies, benchmarking and best-practice studies, operational analyses, litigation support and due diligence.

As a key member of MNP's Assurance team, Michelle has played an instrumental role in assurance policy development, implementing accounting and assurance standards firm-wide and educating assurance practitioners regarding methodologies and new pronouncements. She also provides technical advice and consultation on accounting and assurance issues, as well as on rules of professional conduct issues, to all MNP practitioners.

Michelle was certified a Chartered Accountant (CA) after obtaining a Bachelor of Commerce degree from the University of Alberta. She has been actively involved with the Institute of Chartered Accountants of Alberta, including the Chartered Accountants School of Business, in an instructional and marketing capacity. An avid volunteer, she has assisted numerous groups such as the Easter Seals of Alberta, Paralympic Sports Association and Junior Achievement of Northern Alberta.