The AASB has released a discussion paper proposing to extend reporting rules for private for-profit organisations to not-for-profit (NFP) entities. The changes would introduce a new third tier of general purpose financial statements for smaller NFP entities.

The proposal concedes that the Tier 2 general purpose reporting requirements are too onerous for some smaller NFP entities, whose operations are less complex operations, typically with revenue between $500,000 and $3 million. It is not yet clear how NFPs can apply for Tier 3 reporting.

Simplifications include keeping leases off balance sheet, an income recognition model that better reflects how NFPs obtain and use their funds, optional consolidation requirements, and the measurement of donated assets at either cost or fair value.

You can find more details here.