01-21-2006, 01:05 AM
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Pracs</i>
<br />In most of these NGO's they are required by their Donors to maintain financial records on the basis of 'Receipts and payments' only. Any Financial statements that are prepared, are done soley from extraction (and so mentioned) and may not necessarily be under IFRS.
To most donors, it is only important to see how their money is spent and if its within the charter etc.
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"Failure is a word unknown to me" - M A Jinnah
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
According to my understanding maintaining accounts on receipt and payment basis doesnt mean that you treat capital expenditure as revenue, if it is so, then there would have been no concept of balance sheet!!
As far as the non applicability of IFRSs is concerened on NGOs, if the NGO is registered under section 42 of the Companies Ordinance as not for profit organization(most of the NGOs are), then it shall comply with standards(IFRSs) pursuant to provisions of the Companies Ordinance and 5th schedule thereto.
ICAPians, the unparalleled.
<br />In most of these NGO's they are required by their Donors to maintain financial records on the basis of 'Receipts and payments' only. Any Financial statements that are prepared, are done soley from extraction (and so mentioned) and may not necessarily be under IFRS.
To most donors, it is only important to see how their money is spent and if its within the charter etc.
-------------------------------------------------------------------------------------------
"Failure is a word unknown to me" - M A Jinnah
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
According to my understanding maintaining accounts on receipt and payment basis doesnt mean that you treat capital expenditure as revenue, if it is so, then there would have been no concept of balance sheet!!
As far as the non applicability of IFRSs is concerened on NGOs, if the NGO is registered under section 42 of the Companies Ordinance as not for profit organization(most of the NGOs are), then it shall comply with standards(IFRSs) pursuant to provisions of the Companies Ordinance and 5th schedule thereto.
ICAPians, the unparalleled.
